Free Excel template · Excel for retail and ecommerce

Free margin and markup calculator template

For shop owners and buyers who price products and run promotions. Enter each product's unit cost and price. The template shows margin and markup side by side, the price you need for your target margin, what a discount does to your margin, and flags products below target. A small converter turns any markup into a margin and back.

cellwise-margin-markup-calculator.xlsxExcel workbook · 5.8 KB · works in Excel, Google Sheets, Numbers and LibreOffice · no signup

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Preview and try it

This is the template's sheet, calculated by the same engine as the Cellwise app. Change any number to see the formulas react before you download.

	A	B	C	D	E	F	G	H	I	J	K
1	SKU	Product	Unit cost	Price	Margin	Markup	Profit per unit	Price for target margin	Promo price	Margin at promo	Check
2	TS-01	Organic crew tee	7.4	28	0.73571428571	2.7837837838	20.6	18.5	22.4	0.66964285714	OK
3	HD-02	Zip hoodie	18.9	64	0.7046875	2.3862433862	45.1	47.25	51.2	0.630859375	OK
4	CP-03	Canvas cap	4.1	22	0.81363636364	4.3658536585	17.9	10.25	17.6	0.76704545455	OK
5	TB-04	Tote bag	3.25	18	0.81944444444	4.5384615385	14.75	8.13	14.4	0.77430555556	OK
6	BN-05	Beanie	3.8	24	0.84166666667	5.3157894737	20.2	9.5	19.2	0.80208333333	OK
7	MG-06	Enamel mug	4.6	19	0.75789473684	3.1304347826	14.4	11.5	15.2	0.69736842105	OK
8	SK-07	Crew socks (3 pack)	5.2	21	0.75238095238	3.0384615385	15.8	13	16.8	0.69047619048	OK
9	PR-08	Art print A3	2.15	30	0.92833333333	12.953488372	27.85	5.38	24	0.91041666667	OK
10	JK-09	Rain jacket	34	119	0.71428571429	2.5	85	85	95.2	0.64285714286	OK
11	WB-10	Wool blanket	38	79	0.51898734177	1.0789473684	41	95	63.2	0.39873417722	Below target
12	BT-11	Steel water bottle	9.5	22	0.56818181818	1.3157894737	12.5	23.75	17.6	0.46022727273	Below target
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How the formulas work

Margin: profit as a share of price

E2=IF(D2="","",(D2-C2)/D2)

Price minus cost, divided by price. This is the number to compare with your target and with industry figures. The IF keeps empty rows blank.

Markup: profit as a share of cost

F2=IF(OR(C2="",D2=""),"",(D2-C2)/C2)

The same profit divided by cost instead. The tee has a 74% margin but a 278% markup. Both are correct; they answer different questions.

Price for your target margin

H2=IF(C2="","",ROUND(C2/(1-$N$1),2))

Cost divided by (1 minus the target margin in N1). At 60%, a $7.40 tee needs $18.50. Multiplying cost by 1.6 would give $11.84, which is only a 37.5% margin.

Margin left after a promotion

J2=IF(D2="","",(I2-C2)/I2)

I2 takes the discount in N2 off the price; J2 works out the margin at that promo price. A 20% discount on the rain jacket drops its margin from 71% to 64%, and on low-margin products it can wipe out most of the profit.

Convert markup to margin

N6=N5/(1+N5)

A markup of 150% is the same as a margin of 60%. The reverse, in N10, is margin / (1 - margin). Use it when a supplier quotes markup and your reports use margin.

Make it yours

Unit cost should include what it takes to get the product on your shelf: freight in, duties, and packaging. Leaving those out makes every margin look better than it is.
Sort by the Margin column (Data > Sort) to see your weakest products at the top.
Try different promo discounts in N2 before you announce a sale, and check the products marked Below target.
Add products in rows up to 16: the formulas are already there.

FAQ

What is the difference between margin and markup?

Both use profit (price minus cost). Margin divides it by the price, markup divides it by the cost. A product that costs $10 and sells for $25 has a 60% margin and a 150% markup.

How do I calculate selling price from cost and margin in Excel?

Divide the cost by (1 minus the margin): =cost/(1-margin). For a $12 cost and a 55% margin, =12/(1-0.55) gives $26.67.

Why is my margin lower than the markup I used?

Because markup is measured against cost and margin against the bigger selling price. A 50% markup gives only a 33.3% margin. Use =markup/(1+markup) to convert.

Functions used

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Updated November 2, 2026