What is the Excel formula for markup?

The Excel formula for selling price from cost and markup % is: =A2*(1+B2) where A2 is your cost and B2 is your markup as a decimal (0.50 for 50%). If B2 contains a whole number (50 for 50%), use =A2*(1+B2/100). The most common mistake is writing =A2*B2 — this gives you the profit amount, not the selling price. Always add 1 to the markup decimal before multiplying by cost.

How do I calculate markup percentage in Excel?

Use =(C2-A2)/A2 where C2 is selling price and A2 is cost. This gives markup as a decimal — format the cell as Percentage to display as %. For example: Cost = $20 (A2), Price = $30 (C2). Formula: =(30-20)/20 = 0.50, displayed as 50%. Important: this is markup (denominator = cost), not margin (denominator = price). The margin formula is =(C2-A2)/C2 — same numerator, different denominator, always a lower percentage.

How do I include platform fees in my Excel pricing formula?

Use the fee-adjusted formula: =(A2*(1+B2))/(1-E2) where A2 = cost, B2 = markup % (decimal), E2 = platform fee % (decimal). This resolves the circular dependency that occurs when fees are calculated on the selling price. For multiple fees (e.g., transaction fee + payment processing fee): =(A2*(1+B2))/(1-E2-F2). Example: Cost $20, 50% markup, 6.5% Etsy fee: =(20*1.5)/(1-0.065) = $32.09. At this price, Etsy takes $2.09 (6.5%), leaving $30.00 net — exactly $10 profit on $20 cost = 50% markup preserved.

How do I build a pricing spreadsheet in Excel?

Set up one row per product with these columns: (A) Product name, (B) Unit cost, (C) Packaging, (D) Shipping, (E) Total cost =B+C+D, (F) Platform fee %, (G) Target markup %, (H) Selling price =(E*(1+G))/(1-F), (I) Fee $ =H*F, (J) Net revenue =H-I, (K) Profit =J-E, (L) Gross margin =K/H, (M) Actual markup =(H-E)/E. Enter data in columns A-D, F, and G. All other columns calculate automatically. See the complete template structure in Section 4 above with copy-paste formulas for every column.

What's the difference between markup and margin in Excel?

Markup formula: =(Price-Cost)/Cost — denominator is cost. Margin formula: =(Price-Cost)/Price — denominator is price. At $20 cost and $30 price: Markup = ($30-$20)/$20 = 50%. Margin = ($30-$20)/$30 = 33.3%. They are never equal (except at 0%). Markup is always the higher number. A common error is using the margin formula when you mean markup — this produces a lower % and leads to underpricing when you try to achieve 50% markup using the margin formula. Full guide: /markup-vs-margin/

How do I calculate selling price from cost and margin (not markup) in Excel?

The margin-based selling price formula is: =A2/(1-B2) where A2 = cost and B2 = target margin as decimal. Example: Cost $20, target 33.3% margin: =20/(1-0.333) = $30.00. Compare to markup formula: =20*(1+0.50) = $30.00. Both give $30 — because 50% markup and 33.3% margin are equivalent at this price point. To convert between them in Excel: Markup from Margin: =B2/(1-B2). Margin from Markup: =B2/(1+B2). Markup vs margin guide: /markup-vs-margin/

Spreadsheet Reference

Markup Formula in Excel

Copy-paste formulas for every markup calculation — plus a complete pricing spreadsheet template you can build in 10 minutes.

A markup pricing spreadsheet works best when each variable has its own column and formulas reference those columns — rather than hardcoding numbers into formulas. This makes it easy to update costs or markup targets and have all prices recalculate instantly. The template structure below uses this approach: cost in one column, markup % in another, and price calculated by formula from those two inputs.

One critical setup note: store markup percentages as decimals (0.50 for 50%) OR as whole numbers (50 for 50%) — but be consistent across your entire sheet. Mixing the two is the single most common cause of wrong prices in markup spreadsheets. The formulas below include both versions so you can choose your preferred format.

Google Sheets vs Excel: The formulas on this page work identically in both Excel and Google Sheets unless noted otherwise. The only common difference is that Google Sheets uses locale-specific decimal separators in some regions (comma instead of period). All formulas below use the standard period decimal separator.

Copy-Paste Syntax

The Four Markup Formulas — Ready to Copy

Click any formula to copy. Replace A2, B2, C2 with your actual cell references.

Formula 1: Calculate Selling Price from Cost and Markup %

Scenario: You know your cost (column A) and target markup % (column B). You want Excel to calculate the selling price (column C).

Column setup

A2 = Cost (e.g., 20.00)
B2 = Markup % stored as decimal (e.g., 0.50 for 50%)
C2 = Selling Price [formula]

Formula (markup % as decimal):

=A2*(1+B2)

Formula (markup % as whole number, e.g., 50 for 50%):

=A2*(1+B2/100)

Example output

A2 = 20.00
B2 = 0.50
C2 = =A2*(1+B2) -> 30.00

Most common mistake: Writing =A2*B2 instead of =A2*(1+B2). =A2*B2 gives you the profit amount ($10), not the selling price ($30). Always add 1 to the markup decimal before multiplying by cost.

Formula 2: Calculate Cost from Selling Price and Markup %

Scenario: You know the market price (column C) and your required markup % (column B). You want to find the maximum cost you can pay (column A) — your cost ceiling.

Column setup

B2 = Markup % stored as decimal (e.g., 0.50 for 50%)
C2 = Selling Price (e.g., 30.00)
A2 = Maximum Cost [formula]

Formula (markup % as decimal):

=C2/(1+B2)

Formula (markup % as whole number):

=C2/(1+B2/100)

Example output

B2 = 0.50
C2 = 30.00
A2 = =C2/(1+B2) -> 20.00

Use case: Before any supplier negotiation, calculate your cost ceiling with this formula. Enter your target selling price and required markup — the formula tells you the maximum you can pay.

Formula 3: Calculate Markup % from Cost and Selling Price

Scenario: You have existing prices (column C) and costs (column A). You want to know what markup % you are currently achieving (column B).

Column setup

A2 = Cost (e.g., 20.00)
C2 = Selling Price (e.g., 30.00)
B2 = Markup % [formula]

Formula (result as decimal):

=(C2-A2)/A2

Formula (result as percentage, e.g., 50%):

=(C2-A2)/A2*100

Formula (result formatted as % — format cell as % in Excel):

=(C2-A2)/A2

Then format column B as Percentage in Excel: Home -> Number -> %

Example output

A2 = 20.00
C2 = 30.00
B2 = =(C2-A2)/A2 -> 0.50 (displayed as 50% if cell formatted as %)

Markup vs Margin — do not mix them up: Markup %: =(C2-A2)/A2 (denominator = cost). Margin %: =(C2-A2)/C2 (denominator = price). At $20 cost / $30 price: Markup = 50%, Margin = 33.3%. Full markup vs margin guide ->

Formula 4: Calculate Profit $ from Cost and Markup %

Scenario: You want to see the dollar profit per unit alongside the selling price.

Column setup

A2 = Cost (e.g., 20.00)
B2 = Markup % as decimal (e.g., 0.50)
D2 = Profit $ [formula]

Formula:

=A2*B2

Or calculate from Price - Cost:

=C2-A2

Example output

A2 = 20.00
B2 = 0.50
D2 = =A2*B2 -> 10.00

Advanced Formula

Advanced: The Platform Fee Formula (Etsy, Amazon, Shopify)

When fees are a % of your selling price, the standard formula creates a circular dependency. Here is how to fix it in Excel.

Platform fees (Etsy's 6.5% transaction fee, Amazon's 8%–15% referral fee, Shopify's payment processing fee) are calculated on your selling price — not your cost. This creates a circular dependency in Excel: the fee depends on the price, and the price depends on the fee. If you just add the fee % to your cost and apply markup, you will systematically underprice. The correct formula resolves the circular dependency algebraically.

Column setup

A2 = Cost (e.g., 20.00)
B2 = Target Markup % as decimal (e.g., 0.50)
E2 = Platform Fee % as decimal (e.g., 0.065 for Etsy's 6.5%)
C2 = Selling Price [formula — fee-adjusted]

Fee-adjusted formula

=(A2*(1+B2))/(1-E2)

Example output

A2 = 20.00  (cost)
B2 = 0.50   (50% markup)
E2 = 0.065  (Etsy 6.5% fee)
C2 = =(A2*(1+B2))/(1-E2) -> 32.09

Verify:
  Fee paid: $32.09 x 6.5% = $2.09
  Net revenue: $32.09 - $2.09 = $30.00
  Profit: $30.00 - $20.00 = $10.00
  Markup: $10.00 / $20.00 = 50%

With multiple fees (e.g., Etsy transaction + payment processing):

=(A2*(1+B2))/(1-E2-F2)

Example with Etsy full fees (6.5% + 3% payment processing)

E2 = 0.065
F2 = 0.030
C2 = =(A2*(1+B2))/(1-E2-F2) -> 33.90

Verify:
  Transaction fee: $33.90 x 6.5% = $2.20
  Payment fee: $33.90 x 3.0% = $1.02
  Total fees: $3.22
  Net revenue: $33.90 - $3.22 = $30.68  <- slight rounding
  Profit approx. $10.00, Markup approx. 50%

Why the naive formula fails: Naive: =A2*(1+B2)+A2*E2 -> $30.00 + $1.30 = $31.30. At $31.30, Etsy takes 6.5% = $2.03 in fees. Net revenue: $31.30 - $2.03 = $29.27. Profit: $29.27 - $20.00 = $9.27. Actual markup: $9.27 / $20.00 = 46.4%, not 50%. The correct formula gives $32.09 and preserves the full 50% markup.

Template

Complete Pricing Spreadsheet — Column by Column

Build this template in 10 minutes. Every column formula is listed below.

Sheet structure: one row per product

Col	Header	Type	Formula / Input
A	Product Name	Input	Text
B	COGS / Unit Cost	Input	Number (e.g., 20.00)
C	Packaging Cost	Input	Number (e.g., 0.85)
D	Shipping Cost	Input	Number (e.g., 4.50)
E	Total Direct Cost	Formula	`=B2+C2+D2`
F	Platform Fee %	Input	Decimal (e.g., 0.065)
G	Target Markup %	Input	Decimal (e.g., 0.50)
H	Selling Price	Formula	`=(E2*(1+G2))/(1-F2)`
I	Platform Fee $	Formula	`=H2*F2`
J	Net Revenue	Formula	`=H2-I2`
K	Profit $	Formula	`=J2-E2`
L	Gross Margin %	Formula	`=K2/H2`
M	Actual Markup %	Formula	`=(H2-E2)/E2`
N	Markup Check	Formula	`=IF(ABS(M2-G2)<0.001,"✅","⚠️ Check")`

Row 2 formulas (copy these into your spreadsheet):

E2: =B2+C2+D2
H2: =(E2*(1+G2))/(1-F2)
I2: =H2*F2
J2: =H2-I2
K2: =J2-E2
L2: =K2/H2
M2: =(H2-E2)/E2
N2: =IF(ABS(M2-G2)<0.001,"✅","⚠️ Check")

Once row 2 is set up, select E2:N2 and drag down to fill as many rows as you have products. Columns B, C, D, F, and G are inputs — fill these for each product. All other columns calculate automatically. The N column (Markup Check) flags any row where the actual markup differs from your target by more than 0.1%.

Formatting tips:

Format columns B, C, D, E, H, I, J, K as Currency ($)
Format columns F, G, L, M as Percentage (%)
Freeze row 1 (View -> Freeze Panes -> Freeze Top Row)
Add conditional formatting to column K: red fill if K2 < 0

Multi-Channel

Multi-Channel Pricing — One Cost, Multiple Prices

Price the same product across Shopify, Etsy, and Amazon in one sheet.

Add these columns to the right of the base template:

Col	Header	Formula	Notes
O	Shopify Fee %	Input	e.g., 0.029 (2.9% processing)
P	Shopify Price	`=(E2*(1+G2))/(1-O2)`	Fee-adjusted for Shopify
Q	Shopify Profit $	`=P2*(1-O2)-E2`
R	Etsy Fee %	Input	e.g., 0.095 (6.5%+3%)
S	Etsy Price	`=(E2*(1+G2))/(1-R2)`	Fee-adjusted for Etsy
T	Etsy Profit $	`=S2*(1-R2)-E2`
U	Amazon Fee %	Input	e.g., 0.15 (15% referral)
V	Amazon Price	`=(E2*(1+G2))/(1-U2)`	Fee-adjusted for Amazon
W	Amazon Profit $	`=V2*(1-U2)-E2`
X	Best Channel	`=IF(AND(Q2>=T2,Q2>=W2),"Shopify",IF(T2>=W2,"Etsy","Amazon"))`	Highest profit channel

Multi-channel formulas (columns O-X):

P2:  =(E2*(1+G2))/(1-O2)
Q2:  =P2*(1-O2)-E2
S2:  =(E2*(1+G2))/(1-R2)
T2:  =S2*(1-R2)-E2
V2:  =(E2*(1+G2))/(1-U2)
W2:  =V2*(1-U2)-E2
X2:  =IF(AND(Q2>=T2,Q2>=W2),"Shopify",IF(T2>=W2,"Etsy","Amazon"))

Column X automatically identifies which channel produces the highest profit for each product — useful for deciding where to focus your selling effort.

Formula QA

6 Common Excel Markup Mistakes — and the Correct Formula

#	What You Wrote	What It Calculates	Correct Formula	Notes
1	`=A2*B2`	Profit $ (not price)	`=A2*(1+B2)`	Missing the +1
2	`=A2*(1+50)`	51x cost ($1,020 on $20)	`=A2(1+0.50) or =A2(1+B2/100)`	% not converted to decimal
3	`=(C2-A2)/C2`	Gross Margin %	`=(C2-A2)/A2`	Wrong denominator — this is margin, not markup
4	`=A2+A2B2+A2E2`	Naive fee addition	`=(A2*(1+B2))/(1-E2)`	Fee applied to cost, not price — underprice
5	`=A2*(1+B2+E2)`	Markup + fee on cost	`=(A2*(1+B2))/(1-E2)`	Same error as #4, different form
6	`=C2/B2`	Nonsense result	`=C2/(1+B2)`	Missing the +1 in reverse formula

Quick diagnostic: If your calculated price seems too low (close to cost), you probably have mistake #1 or #4. If your price is astronomically high, you probably have mistake #2. If your markup % and margin % are the same number, you have mistake #3 — they are never equal except at 0%.

Compatibility

Google Sheets vs Excel — What's Different

Feature	Excel	Google Sheets	Notes
Basic formulas	`=A2*(1+B2)`	`=A2*(1+B2)`	Identical
Named ranges	Supported	Supported	Both work the same
Percentage format	Format as %	Format as %	Both work the same
Array formulas	Ctrl+Shift+Enter	`=ARRAYFORMULA(...)`	Different syntax
Conditional formatting	Home -> Conditional Formatting	Format -> Conditional formatting	Different UI, same logic
Decimal separator	. (period)	. or , depending on locale	Set in File -> Settings in Sheets
Currency format	Format -> Cells -> Currency	Format -> Number -> Currency	Different UI, same result
Sharing/collaboration	OneDrive / SharePoint	Google Drive	Sheets easier for sharing
Offline use	Full offline	Limited offline	Excel advantage

All markup formulas on this page work identically in both applications — the only thing that may differ is your locale's decimal separator setting in Google Sheets.

Quick Lookup

Markup Quick Reference — Common Values

Bookmark this table — find any markup/price combination instantly.

Cost	20% Markup	30% Markup	50% Markup	75% Markup	100% Markup	150% Markup
$5.00	$6.00	$6.50	$7.50	$8.75	$10.00	$12.50
$10.00	$12.00	$13.00	$15.00	$17.50	$20.00	$25.00
$15.00	$18.00	$19.50	$22.50	$26.25	$30.00	$37.50
$20.00	$24.00	$26.00	$30.00	$35.00	$40.00	$50.00
$25.00	$30.00	$32.50	$37.50	$43.75	$50.00	$62.50
$30.00	$36.00	$39.00	$45.00	$52.50	$60.00	$75.00
$40.00	$48.00	$52.00	$60.00	$70.00	$80.00	$100.00
$50.00	$60.00	$65.00	$75.00	$87.50	$100.00	$125.00
$75.00	$90.00	$97.50	$112.50	$131.25	$150.00	$187.50
$100.00	$120.00	$130.00	$150.00	$175.00	$200.00	$250.00

Formula used: Price = Cost × (1 + Markup%). For the fee-adjusted version (with platform fees), use the calculator at the top of this page or the formula in Section 3. Full markup calculator ->

FAQ

Markup Formula in Excel

The Four Markup Formulas — Ready to Copy

Formula 1: Calculate Selling Price from Cost and Markup %

Formula 2: Calculate Cost from Selling Price and Markup %

Formula 3: Calculate Markup % from Cost and Selling Price

Formula 4: Calculate Profit $ from Cost and Markup %

Advanced: The Platform Fee Formula (Etsy, Amazon, Shopify)

Complete Pricing Spreadsheet — Column by Column

Multi-Channel Pricing — One Cost, Multiple Prices

6 Common Excel Markup Mistakes — and the Correct Formula

Google Sheets vs Excel — What's Different

Markup Quick Reference — Common Values

Related Tools & Guides

markup calculator

markup formula

markup vs margin

Etsy pricing calculator

Amazon pricing calculator

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how to price a product

Markup Formula Excel FAQ

What is the Excel formula for markup?

How do I calculate markup percentage in Excel?

How do I include platform fees in my Excel pricing formula?

How do I build a pricing spreadsheet in Excel?

What's the difference between markup and margin in Excel?

How do I calculate selling price from cost and margin (not markup) in Excel?