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 markup % to the cost price will give you the selling price of the product.

Table of Contents

## What is Markup?

Markup is actually the difference between the **Selling Price** and **Wholesale** or **Making Cost** of a product.

Again, we also calculate the **Profit Margin** in the same way. I mean **Gross Profit Margin** is also the difference between the **Selling Price** and **Wholesale** or **Making Cost** of the product.

But we calculate Markup % and Profit Margin % in different ways.

Here is the overall picture of these two concepts.

You see that to get the **Markup %**, we divide the **Profit Margin **(= Selling Price – Unit Cost) by the **Cost Price**. And to calculate the **Profit Margin %**, we divide the **Profit Margin **(= Selling Price – Unit Cost) by the **Selling Price**.

## Adding Percentage Markup to the Cost Price (Example)

For example, your **wholesale price** (Cost Price) of a product is $25. Now you want to add **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

= $35

Now, what is your **Profit Margin** and **Profit Margin %**?

**Profit Margin** = Selling Price – Unit Cost = $35 – $25 = $10

**Profit Margin %** = Profit Margin / Selling Price = $10 / $35 =0.2857 = 0.2857 x 100% = 28.57%

## Download Excel Calculator

Please download at first the Excel calculator that I have used to write this article.

Excel-formula-to-add-percentage-markup.xlsx

## Excel Formula to Add Percentage Markup to a List of Products

Suppose, you have a list of products and you want to add different **Markup %** to those products. In one occasion, you can offer your customers with one **Markup %** (say 30%) and in another occasion, you may offer a different **Markup %** (say 40%). 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 calculated the **Selling Prices** of these products for different **Markup Percentages **(30%, 40%, 50%, 60%).

We have also calculated **Profit Margin** for those **Selling Prices**.

### Excel formulas used to get the results

We have made just two Excel formulas to get the results.

1) In the cell **D6,** I have used this Excel formula: **=$C6*(1+D$5)**.

You see that this formula has mixed cell references. Column C and Row 5 is made 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 reference $5 will not change.

2) In the cell **H6**, I have entered this formula: **=D6-$C6**

This formula has one mixed reference: **$C6**. As the column **C** is absolute, when we shall apply the formula on the right cells, the **$C** reference will not change.

## Calculating Selling Price, Cost Price, Markup % and Profit Margin % from One Another

1) Calculate **Selling Price** and **Profit Margin %** from the **Cost Price** and **Markup %**

In this calculation, Cost Price and Markup % are given, we calculate the Selling Price and the Profit Margin % from those data.

Here is the procedure:

2) Calculate **Cost Price** and **Profit Margin** **%** from the **Markup %** and **Selling Price**.

In this calculation, **Selling Price** and **Markup %** are given. We calculate the **Cost Price** and **Profit Margin** **%** from them.

3) Calculate **Cost Price** and **Markup %** from the **Profit Margin %** and the **Selling Price**.

In this calculation, **Profit Margin %** and **Selling Price** are given. We will calculate the **Cost Price** and **Markup %** from them.

## Markup % vs. Gross Profit Margin %

From our above discussion, it is clear now the difference between the **Markup %** and **Gross Profit Margin %**.

Using Markup %, we determine the Selling Price of a product based on the Cost Price.

We get Profit Margin % dividing the Profit Margin by the Selling Price.

Markup % varies from industry to industry.

Industry | Markup % |

Clothing | 100-350% |

Shoes | 100-500% |

Cell Phone | 8-10% |

Furniture | 200-400% |

Grocery | 5-25% |

Cosmetics | 60-80% |

Prescription Medicine | 200-5600% |

New Car | 8-10% |

Eyeglasses | 800-1000% |

Source: Wise Bread |

## 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 **Grocery** Industry will lead you to financial disaster.

So, these are my Excel formulas to add percentage markup to the cost price to get the selling price of a product. If you have any comment, please let me know in the comment box.

Thanks for being with my blog.

Happy Excelling!