In this tutorial, I will show several ways of using the Excel formula to add percentage markup to the cost price of a product. Adding a Markup % to the cost price will give you the selling price of the product.
The following image shows an overview of using the Excel formula to add Markup %. You can use it as a calculator too.
Basic Formula to Add Percentage Markup in Excel
Markup is the difference between the Selling Price and the Wholesale or Making Cost of a product.
You will get the Markup % by dividing the (Selling Price – Unit Cost) by the Cost Price, multiplied by 100.
An Example to Add Percentage Markup to Cost Price:
For example, your wholesale price (Cost Price) of a product is $25. Now you want to add a 40% Markup to the wholesale price of the product. What will be your selling price?
Your Selling Price will be:
= Wholesale Price x (1+Markup %)
= $25 x (1 + 40%)
= $25 x 1.40
Excel Formula to Add Percentage Markup: 3 Examples
Suppose you have a list of products, and you want to add different Markup % to those products. On one occasion, you can offer your customers one Markup % (say 10%) and on another occasion, you may offer a different Markup % (say 20%). All these pricing can be done in one Excel sheet.
You are seeing an Excel worksheet in the following image. A list of gardening-related tools. Every product has a Wholesale Cost. We have to calculate the Selling Prices of these products for different Markup Percentages (10%, 15%, 20%, 25%).
1. Use a Customized Excel Formula to Add 10, 15, 20, or 25% Markup
We have made just an Excel formula for adding Percentage Markup. Apply the following steps to use it.
📌 Steps:
- In cell D7, I have used the following Excel formula:
=$C7*(1+D$6)
Quick Notes:
- You see that this formula has mixed cell references. Column C and Row 6Â are made of absolute references.
- We know when we go down or up, row references change. When we go left or right, column references change.
- For the above formula, when we will go right, $C will not change and when we shall copy the formula down, the row references $6Â will not change.
- Now, pull the Fill Handle icon first rightwards and second downwards.
We can see the result is showing in the covered cells. We can also drag the Fill Handle icon in the opposite order and will get the same result.
2. Apply Excel SUM Function to Add Percentage Markup
We can use the Excel SUM function that simplifies the calculation of adding percentage markup in Excel.
📌 Steps:
- Put the formula below on Cell D7.
=SUM($C7,$C7*D$6)
- Then, drag the Fill Handle icon both rightward and downward one by one.
Note:
Like, the previously shown methods we applied mixed reference in the formula. Here, Column C and Row 6Â are fixed. So, we used $C and $6Â in the formula.
3. Use PRODUCT Function
The PRODUCT function multiplies all numbers given as arguments. In this section, we will use the PRODUCT function, that adds percentage markup easily with the result.
📌 Steps:
- Again, go to Cell D7Â and paste the following formula.
=PRODUCT($C7,1+D$6)
- Similarly, pull the Fill Handle icon in two directions shown in the previous methods.
Like, the previous methods we’ve applied mixed references in the formulas in a similar way.
Download Practice Workbook
Please download the following practice workbook that I have used to write this article. You can also use the last worksheet as a calculator.
Conclusion
Checking out your industry Markup % and determining the selling price of your product is important for becoming successful in your business. Being in the Shoe industry and accepting the Markup % of the Grocery industry will lead you to financial disaster. So, these are my Excel formulas to add a percentage markup to the cost price to get the selling price of a product.
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Hello, thank you fr the post, really helpful insights, but what if your product cost varies, for instance when importing, is there any way to create a formula to determine the margin when there is an increase or decrease? I’m struggling to get that one right