Functions for Markup in Excel

Markup determines the price that the customer pays in a retail environment.

Calculate your retail prices based on wholesale cost with functions in Microsoft Excel. Markup describes the difference between the retail price and wholesale price. Excel provides several mathematical functions that assist you in calculating your markup values. Whether you want to calculate the markup alone or apply it to the wholesale cost to return the retail price, you can use Excel's built-in functions.

Data Organization

To apply several calculations to a set of values, the organization of your spreadsheet is critical to creating a readable data set. Place your product listings in a single column and enter the wholesale costs in another single column. Remove any blank rows to create a continuous layout. Place column headers in the first row of your data that provide a brief description of your data such as "Product Listing," "Wholesale" and "Markup."

Functions

Excel provides functions to speed up your calculations. Functions can perform a simple calculation, such as adding a column of values together, or they can perform complex evaluations such as calculating the depreciation of an asset based on its value, age and other factors. Functions are organized into categories such as "Math and Trig," "Financial" and "Statistical." Locate all of the functions on the "Formulas" tab of the Ribbon at the top of the page.

Markup from Wholesale

Calculate the markup from the wholesale price with the PRODUCT() and SUM() functions. Input the PRODUCT() function into a new, blank cell and multiply the wholesale cost by a percentage. For example, if your wholesale cost is in cell A2, input "=PRODUCT(B2,0.25)" without the quotation marks to calculate 25 percent of the wholesale cost. Enter the SUM() function into the next blank cell to add the markup to the wholesale such as "=SUM(B2,C2)."

Markup from Retail

If your data lists the wholesale cost and retail price, you can calculate the amount that was used for the markup. Calculate the difference between the two values with operators. If your wholesale cost is listed in column B and the retail price is listed in column C, input "=(C2-B2)" into column D to calculate the markup. The difference calculation returns the whole amount, rather than the percent, that is between the two values.

References

• Microsoft Office: Product Function