It is probably common knowledge that Excel is a fantastic tool for all kinds of calculations and mathematical operations.
Having that in mind, it is no wonder that it can be used to calculate simple things like markup and percentage markup. We will show how to do this and how to calculate a percentage in the example below:
Add Percentage Markup
Markup is a common measure mostly used in Economics. It represents the amount that is added to the total price of goods to cover these expenses and to make a profit.
For our example, we will use a simple table with the various goods, their cost to make, and their selling price:
To calculate the markup of these goods, all we need to do is subtract the selling price and cost of goods. The results are as follows:
We now want to calculate the percentage markup as the next step. To do this, all we need to know is the formula for percentage markup, and that is:
|
1 |
(Selling price – Cost of goods)/Cost of goods |
In our case, since we already calculated the difference between selling cost and cost of goods (that is our markup) we will just divide this number with the cost of goods:
We dragged this formula till the end of our range. Our data in column E is not formatted as a percentage, so we will select the range E2:E5 and format these numbers as percentages by going to Home tab >> Number >> Format Cells >> Percentage:
We will select two decimal places and our final table will look like this:
