Markup formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Cost per unit ($) | 60 | 60 |
| B3 | Selling price per unit ($) | 100 | 100 |
| B5 | Markup (%) | =ROUND((B3-B2)/B2*100,1) | 66.7 |
| B6 | Gross margin (%) | =ROUND((B3-B2)/B3*100,1) | 40 |
| B7 | Profit per unit ($) | =B3-B2 | 40 |
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Frequently asked questions
- How do you calculate markup?
- Subtract the cost from the price and divide by the cost. A $60 product sold at $100 has a $40 profit and a 66.7% markup.
- How do I set a price from a target margin?
- Price = cost ÷ (1 − target margin). For a 40% margin on a $60 cost: $60 ÷ 0.6 = $100.
- Why do markup and margin differ?
- They divide the same profit by different bases: cost for markup, price for margin. Mixing them up is a common reason quotes come out less profitable than planned.
- How do you calculate markup in Excel?
- Put the cost in B2 and the selling price in B3, then use =ROUND((B3-B2)/B2*100,1) for markup % and =ROUND((B3-B2)/B3*100,1) for margin %. The free Excel template below has both set up.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.