# How to calculate markup percentage in Excel

Divide the profit by the cost: `=(C2-B2)/B2`, where B is the cost and C the selling price.

**Excel:** `=(C2-B2)/B2` (Every current version)

**Google Sheets:** the same formula works.

## Example

Sample data (row 1 is the header):

| A | B | C | D |
| --- | --- | --- | --- |
| Product | Cost | Price | Markup |
| Notebook | 20 | 30 |  |
| Backpack | 62.5 | 100 |  |
| Jacket | 140 | 175 |  |
| Water bottle | 8.4 | 12.6 |  |
| Boots | 310 | 449 |  |

Formula in D2, filled to D6: `=(C2-B2)/B2`

Result: 50.0%; 60.0%; 25.0%; 50.0%; 44.8%

## 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.

## Other ways

- `=C2/B2-1`: The same markup: the price as a multiple of cost, minus 1.
- `=(C2-B2)/C2`: 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.

## 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)`.

Every formula and result on this page was checked by running it in the Spreadsheet Practice formula engine on 2026-10-30.

Source: https://spreadsheetpractice.com/formulas/markup-percentage