How To Calculate Markup in Excel

Calculating markup is a great way to determine how much you are earning from your business. Markup is the cost you added for providing a product or a service. Markup is the income you earned from selling a product or providing a service. If you use Microsoft Excel to calculate your markup, you can come up with the total of your earnings easily. Microsoft Excel uses formulas to calculate just about anything, and that does not exclude the markup cost of your product or service. However, Microsoft Excel looks tricky. The program might intimidate a non-regular user.

Below are the very simple steps to calculating markup in Microsoft Excel.

  • Pick your cells. Microsoft Excel uses a worksheet with cells to accommodate words, numbers and formulas. A cell is the little rectangle under the letters lining the top of the worksheet. The letters above the worksheet also serve as the components of the formula used to calculate. In this case, the letters will be useful for the formula later. There are also numbers to the left of the worksheet. You will use those numbers in the formula as well. Pick any cell and take note of the aligned numbers and letters.
  • Use the cells. Assuming you picked a cell under the letter A and aligned with the number 1. This is cell A1. Use this cell for your item cost. Type the cost of the item in cell A1. You will need another cell. For instance, you used the cell under letter B aligned with number 1. This is Cell B1. Use this cell for your selling price. Type the product's/service's price in cell B1.
  • Input the formula. Formulas for excel are constant. Constant formulas used in Excel allow ease of use to the people using this program. In this case, it is not far from the formula used manually calculating markup. The formula for calculating markup in excel is "=cell used for item cost/cell for selling price". Since we used cell A1 for the item cost and cell B1 selling price, the formula that Microsoft Excel will recognize is "=A1/B1". You need another cell for the formula. You can pick any cell and the answer, which is the markup, will appear there. Press enter and you will get the markup for the numbers in cell A1 and B1.

 Microsoft Excel uses formulas that people use when manually calculating markup. However, Microsoft excel calculates by the cell instead of the individual numbers. This allows its users to calculate much easier. This also allows the users to change the numbers in the cells without having to change the formula, producing a much faster answer to the calculation. If you follow the steps listed above, you will easily get the markup cost in a considerably smaller amount of time than if you calculate the markup by yourself. In addition, you do not have to start all over again if you put the wrong number in the item cost or the item price. Microsoft Excel will automatically change the markup if the user changes the numbers or values typed in the cells.


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