This Excel tutorial demonstrates how to calculate the selling price. Youâ€™ve put in a lot of effort to manufacture your products, and theyâ€™re ready to sell. *Are you, however, undervaluing your items when it comes to the price?* Or are you overpricing them? To build a successful business with products or services, a good selling price is so much crucial. With selling prices, a businessman must cover the cost of raw materials, **production**, logistics, and also his profit. As a result, a reasonable selling price must be established. Here, we will take you through 4 easy and convenient methods on how to calculate the selling price in **Excel**.

**Table of Contents**hide

## Download Practice Workbook

You may download the following Excel workbook for better understanding and practice yourself.

## What Is Selling Price?

Before calculating the selling price, we all must have to know what the selling price actually is. The selling price is the amount that buyers pay for a product or service. In addition, the selling price depends on other factors as well. Those can be:

- The amount a buyer is willing to pay for a product or service.
- The amount a seller is willing to take as payment.
- The price is competitive with other products of the same type in the market.
- The quality of the product: premium or low-cost.
- Your brand value in the market

## Arithmetic Formula to Calculate Selling Price

Onward of calculating the selling price in Excel, we should know the basic mathematical equations of the selling price. To calculate the selling price, the following formulas could be useful.

If we have the **Cost** and our expected **%Markup**, then the formula for calculating the **Selling price** would be like that:

`Selling Price = Cost * (1 + %Markup)`

On the other hand, if we have the **Cost** and our expected **%Margin**, then the formula is as follows:

`Selling Price = Cost / (1 - %Margin)`

## 4 Methods to Calculate Selling Price in Excel

Itâ€™s very important to understand how to determine selling price because your company will not survive if you donâ€™t generate a profit. Besides this, you have to secure a strong market position. In a nutshell, knowing how to calculate a productâ€™s selling price prosperously is a win-win situation for both you and your customer. They receive a good deal, and you get a fair price if itâ€™s done correctly.

Suppose, youâ€™ve got a **List of Products** containing **Product Names** in column **B** and **Costs** in column **C**.

Youâ€™ve to calculate the **Selling Price** of it. *Are you afraid?* Donâ€™t be so. Here, weâ€™ll show you 4 handy methods of calculating the selling price in Excel.

### 1. Calculating Selling Price from Cost and Markup

Previously, we came to know that, the formula for calculating **Selling Price** from **Cost** and **Markup** is:

But, *do you have this question in your mind?* What is Markup?

The difference between the selling price of a good or service and the cost is known as markup. Itâ€™s usually given as a percentage of the total cost. And thatâ€™s called **%Markup. **To cover the costs of doing business and make a profit, a markup is added to the overall cost borne by the manufacturer of a good or service.

Letâ€™s say, something costs $50 and the markup is 100%, then the selling price will be $(50+50)= $100.

If we use our formula,

** Selling price = $50 * (1 + 100%) = $50 * (1 + 1) = $100** [ âˆµ

*100% means the whole portion*]

To do the same task more easily in Excel, follow our steps below.

**Steps:**

- At first, select cell
**E5**, paste down the formula below, and press**ENTER**.

`=C5*(1+D5)`

- Then, use the
**Fill Handle**tool to complete the lower portion of column**E**.

**Read More: ****How to Calculate Selling Price Per Unit in Excel (3 Easy Ways)**

### 2. Calculating Selling Price from Cost and Margin

From the mathematical formula stated above, we are already acknowledged of **calculating Selling Price from Cost and Margin**.

Before exploring further about this method, weâ€™ll inform you what the margin is.

The profit generated after expenditures are deducted from the selling price is referred to margin in the business. Itâ€™s also expressed as a percentage. But the difference between **Markup** and **Margin** is that **Margin** is the percentage of **Selling Price** whereas **Markup** is the percentage of **Cost**. To make it more understandable, we are giving it mathematically.

`Markup = (Selling Price - Cost) / Cost`

`Margin = (Selling Price - Cost) / Selling Price`

Anyway, follow our steps to calculate the selling price from cost and margin in Excel.

**Steps:**

- Firstly, select cell
**E5**, type down the formula below, and press**ENTER**.

`=C5/(1-D5)`

**Read More: ****How to Calculate Cost per Unit in Excel (With Easy Steps)**

**Similar Readings**

**Calculate Price Per Pound in Excel (3 Easy Ways)****How to Calculate Coupon Rate in Excel (3 Ideal Examples)****Calculate Retail Price in Excel (2 Suitable Ways)****How to Calculate Weighted Average Price in Excel (3 Easy Ways)**

### 3. Calculating Rounded Selling Price in Excel

In our previous methods, the selling prices come in decimal numbers. Which is sometimes troublesome to maintain. To get out of this trouble, weâ€™ll use the **ROUNDUP function**. Go after the steps Carefully.

**Steps:**

- In the beginning, select cell
**F5**, write down the formula below, and tap**ENTER**.

`=ROUNDUP(E5,0)`

Here we took **Num_digits** as 0 because we want to round up our result to the nearest integer.

- Lastly, use the
**Fill Handle**tool and drag it down to get the remaining results.

**Read More: ****How to Calculate Unit Price in Excel (3 Quick Methods)**

### 4. Applying VBA Code to Calculate Selling Price in Excel

Using **VBA **code, you can easily create a function to calculate **Selling Price** and later use that function. Now, weâ€™ll show you how to create and utilize the function to calculate the selling price in Excel.

**Steps:**

- Right-click on the
**Sheet name**and select**View Code**.

- Instantly, the Microsoft Visual Basic for Applications window opens. Right-click on
**Sheet4 (VBA)**> select**Insert**>**Module.**

- It opens a code module, where paste the below code down and clicks on the
**Run**button or press**F5**.

```
Public Function SellingPrice(Cost As Double, Markup As Double)
A = Cost
B = Markup
SellingPrice = A * (1 + B)
End Function
```

- Now closing the code module return back to the worksheet. Select cell
**E5**and start typing down**=Se**, you can automatically see the function**SellingPrice**which we have just created. Then, select the function with your cursor and press**TAB**.

- Later, set the
**variable Cost**and**Markup**by clicking on cells**C5**and**D5**. Then close the parenthesis, and press**ENTER**.

You can see the same results as **method 1** as we worked with markup in our function.

**Read More: How to Calculate Average Selling Price in Excel (3 Easy Methods)**

## Things to Remember

- Always ensure that the
**Cost**and**Selling Price**column is formatted in**Accounting**. - Also, be careful to format the
**Markup**or**Margin**column in**Percentage**. - Remember the distinction between
*Markup*and*Margin*. Again we are giving an example to clear your doubt. If a Product costs $50 and is sold for $100, then its*Markup*is 100% and the*Margin*is 50%.

## Conclusion

Thank you for reading this article, we hope this was helpful. Please let us know in the comment section if you have any queries or suggestions. Please visit our website **Exceldemy** to explore more.

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