How to calculate markup
Markup is profit divided by cost. An item that costs $10 and sells for $25 has a $15 profit and a 150% markup.
To set a price from a markup, multiply the cost by one plus the markup. A 100% markup on a $10 cost gives $10 × 2 = $20. That is the keystone markup many shops use.
Markup vs margin
People often mix them up, and it costs money. If you want a 50% margin but add 50% to cost, you end up with a 33% margin. The calculator shows the margin each markup gives you, so you can check before you set a price.
The formulas behind it
Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.
| Cell | Result | Formula |
|---|---|---|
| B7 | Profit per item | =B3-B2 |
| B8 | Markup | =B7/B2 |
| B9 | Margin | =B7/B3 |
| B10 | Price at your markup | =B2*(1+B4%) |
| B11 | Margin at that price | =B4%/(1+B4%) |