The selling price is the amount a customer pays to buy a product or service. We show you how to calculate a product’s selling price using the selling price formula in Excel.
How to calculate the selling price of a product in Excel
We will use the following dataset to explain how the selling price formula in Excel works.
We use the following steps:
- Select cell C2 and type in the following formula:
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=B2/(1-$B$9) |
- Press Enter and double-click or drag down the fill handle to copy the formula down the column.
Explanation of the formula
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=B2/(1-$B$9) |
The generic formula for calculating the profit margin is:
Margin % = 1- (Selling Price/Cost)
The generic formula for calculating the selling price is, therefore:
Selling Price = Cost/(1-Margin%)
Conclusion
The generic formula for calculating the selling price from cost and margin is:
Selling Price = Cost/(1-Margin%)
This tutorial showed the application of the selling price formula in Excel.