What is the markup formula?

Markup price = unit cost × (1 + markup), and markup = (price − cost) ÷ cost. A cost of 8.50 marked up 45% is 8.50 × 1.45 = 12.33, the Markup calculator's own example; on 2,500 units that is 30,812.50 of revenue.

What is the difference between markup and margin?

Both measure the same profit, but markup divides it by cost and margin divides it by price. Price is bigger than cost, so margin is always the smaller number: a 25% markup gives a 20% margin, and a 25% margin needs a 33.3% markup.

How do you convert a markup to a margin?

Margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). 45% markup is 0.45 ÷ 1.45 = 31.0% margin; a 30% margin needs 0.30 ÷ 0.70 = 42.9% markup. The Dashboard has a table of common values.

How do you price for a target margin?

Divide the cost by one minus the margin: 8.50 ÷ (1 − 0.30) = 12.14 for a 30% margin. Multiplying the cost by 1.30 instead gives 11.05, only a 23.1% margin.

What cost should I mark up?

The full cost you need to recover: material, labour and overhead at the quoted volume. Marking up material and labour alone leaves overhead to come out of the margin.

Does the workbook use macros?

No. It is a plain .xlsx with ordinary formulas, tables and native charts. The Verify sheet re-checks the formulas against fixed test lines and shows Self-check: PASS.

Manufacturing Cost and Quoting

Markup and Margin Pricing Sheet Excel Template

Markup price = unit cost × (1 + markup), and margin = (price − cost) ÷ price, so the same profit is a smaller margin than markup. List every product or quote line with its cost, markup, target margin and quantity, and see the margin each markup really gives, the price and markup the target margin needs, and the revenue and gross profit at the price you quote.

Free, and a plain .xlsx with no macros to enable. A CSV with live formulas and a printed how-to guide come with it.

Overview

This markup and margin pricing template is a working Excel workbook for estimators, sales and pricing teams, finance and owners of manufacturing businesses that price from cost. Each product or quote line is one row with its full unit cost, the markup you apply, the gross margin you are aiming for and the quantity. The workbook gives the markup price, the margin that price really makes, the price and markup the target margin needs, the gap between them, revenue at both prices and the gross profit at the markup price, with a status in words. A conversion table on the Dashboard turns any markup into its margin and any margin into the markup it needs. It ships with eight lines at a fictional job shop, so every tile and chart is filled in when you open it.

In the example a bracket assembly costing 8.50 is marked up 45% to 12.33, a 31.0% margin, clear of the 30% target that needs 12.14. A weld frame costing 410 was marked up 25% to make a 25% margin: that prices it at 512.50, a 20% margin, 34.17 a frame under the 546.67 a 25% margin needs, or 1,366.67 over the 40 frames. Across the eight lines revenue is 152,898.50 and gross profit 44,508.50, and three lines are below their target margin.

Unit cost should be the full cost to recover, including overhead; leave it out and every margin is overstated. The download is a plain .xlsx with no macros. A CSV with live formulas is also included for other tools; the dashboard, charts and self-check are in the .xlsx.

What this template includes

Setup sheet with your company, currency and the near-target band
Lines table, one row per product or quote line: unit cost, markup, target margin and quantity, with a Check column
Per line: markup price, margin at markup price, target price, markup for the target, price gap, a status in words, revenue at each price and gross profit
Dashboard with four tiles (lines, revenue, gross profit, lines below target margin), margin against target by line, the price gap to the target-margin price, the line table and a markup-to-margin conversion table
Method sheet with every formula, and a Verify sheet that re-checks the formulas against an independent reference and the Markup calculator (Self-check: PASS)
CSV with live formulas for the Lines table; the dashboard, charts and self-check are in the .xlsx

Suggested use case

Use it to check a quote or price list against the margin you need, to catch lines marked up by the margin percentage, or to show sales the markup each target margin needs.

How to use it

On Setup, type your company, currency and the near band.
On Lines, give each product or quote line a row: unit cost, markup, target margin and quantity.
Fix anything the Check column names.
Open the Dashboard: margin against target for every line, and the markup each target margin needs.

Frequently Asked Questions

What is the markup formula?: Markup price = unit cost × (1 + markup), and markup = (price − cost) ÷ cost. A cost of 8.50 marked up 45% is 8.50 × 1.45 = 12.33, the Markup calculator's own example; on 2,500 units that is 30,812.50 of revenue.
What is the difference between markup and margin?: Both measure the same profit, but markup divides it by cost and margin divides it by price. Price is bigger than cost, so margin is always the smaller number: a 25% markup gives a 20% margin, and a 25% margin needs a 33.3% markup.
How do you convert a markup to a margin?: Margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin). 45% markup is 0.45 ÷ 1.45 = 31.0% margin; a 30% margin needs 0.30 ÷ 0.70 = 42.9% markup. The Dashboard has a table of common values.
How do you price for a target margin?: Divide the cost by one minus the margin: 8.50 ÷ (1 − 0.30) = 12.14 for a 30% margin. Multiplying the cost by 1.30 instead gives 11.05, only a 23.1% margin.
What cost should I mark up?: The full cost you need to recover: material, labour and overhead at the quoted volume. Marking up material and labour alone leaves overhead to come out of the margin.
Does the workbook use macros?: No. It is a plain .xlsx with ordinary formulas, tables and native charts. The Verify sheet re-checks the formulas against fixed test lines and shows Self-check: PASS.