How to calculate markup percentage in Excel
Formula (Excel and Google Sheets)
=(C2-B2)/B2Divide the profit by the cost: =(C2-B2)/B2, where B is the cost and C the selling price.
- Result on the example
- one result per row in
D2, filled down toD6 - Works in
- Every current version
- Google Sheets
- Same formula
See it work
The formula is already in D2, filled down to D6. Change any input and the result updates, or edit the formula to experiment.
How it works
Markup measures profit against what the item cost you. A notebook that costs 20 and sells for 30 makes 10 of profit, which is 50% of the cost. The brackets make Excel subtract before dividing.
=(C2-B2)/B2Result0.5
C2$30.00The value in C2.
B2$20.00The value in B2.
C2-B210The - operator subtracts.
C2-B2)/B20.5The / operator divides.
In Google Sheets
The same formula works in Google Sheets: =(C2-B2)/B2. We ran it in Google Sheets mode on the same data and it returns the same results.
Other ways to do it
Each one was run on the same example sheet.
| Formula | Result | When to use it |
|---|---|---|
| =C2/B2-1 | 50.0%, 60.0%, 25.0%… | The same markup: the price as a multiple of cost, minus 1. |
| =(C2-B2)/C2 | 33.3%, 37.5%, 20.0%…Different result | This is margin, not markup: profit as a share of the price. Margin is lower: the notebook's 50% markup is a 33.3% margin. |
Common mistakes
- Markup and margin use different bases (cost vs price) and are often confused. A 50% markup is only a 33.3% margin.
- A cost of 0 gives #DIV/0!. Free items have no meaningful markup.
Try it yourself
Same data, empty answer cell. Your formula is graded instantly, then re-checked on changed data, so a typed-in number won't pass.
Calculate markup percentage
D2, calculate the markup: profit as a percentage of cost, then fill down to D6.Questions
How do I set a price from a markup?
Multiply the cost by 1 plus the markup: =B2*(1+50%).
How do I convert markup to margin?
Divide the markup by 1 plus the markup: =D2/(1+D2).
Checked by running on 2026-10-30: every formula and result on this page was calculated by the Spreadsheet Practice formula engine, in both Excel and Google Sheets modes.