profit margins & markups

L

Lance

Hi there,

I need to calculate profit margins as well as markups in Excel.
Would anyone know the formulae for both?

Thanks.
 
N

Nikos Yannacopoulos

Lance,

The difference between the two is the basis. Markup is calculated on Cost,
Margin is calculated on Selling Price. Assuming you have Cost in A1 and
Selling Price in B1, the formulae would be:
Markup: =(B1-A1)/A1
Margin: =(B1-A1)/B1

HTH,
Nikos
 
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