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Markup Formula

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vcloclo1 Posted messages 493 Registration date   Status Member Last intervention   -  
vcloclo1 Posted messages 493 Registration date   Status Member Last intervention   -
Hello,

Hi,

In an Excel table:

D23 (Excluding VAT Price) = 100.00 €
C23 (Markup) = 30% (which is a coefficient of 1.429 for the example)
B23 (Excluding VAT Selling Price) = 142.86 €

How can I make it so that when I enter my markup rate (10, 20, 30, or any rate) it gives me the result in B23 as if I had applied the coefficient?

Currently, my formula gives me 130.00 € in B23, which is not correct. It actually makes a markup of 23.08%.

Thank you

Configuration: Windows 7 / Mozilla 11.0

--
The mind is like a parachute, it is only useful when it is open.

4 answers

  1.
    vcloclo1 Posted messages 493 Registration date   Status Member Last intervention   33
     
    No, 1.429 is equal to 30% markup, not margin, don't confuse them.

    So when I want my 30%, I multiply by 1.429

    In detail:
    100 x 1.429 = 142.86 which is 30% markup
    100 + 30% = 130 which is 23.08% markup

    The margin rate and markup rate are not the same ;-)

    The mind is like a parachute, which is only useful when it is open.
    1
    1. Chris 94 Posted messages 1937 Registration date   Status Moderator Last intervention   7 536
        
      No, 1.429 is equal to 30% markup, not margin, don't confuse them.

      The markup rate and the margin rate are the same ;-)

      There is a slight contradiction in the statement...

      And, 130% is equal to 100 x 1.30!!!

      I don't know what the markup rate is, by the way, and I don't care.

      But:
      - your reasoning or your data is wrong,
      - you didn't tell me when it's due...
      0
    2. vcloclo1 Posted messages 493 Registration date   Status Member Last intervention   33
       
      I'm talking about a +30% mark-up and you're talking to me about a +30% margin. In fact, you didn't understand, you're talking to me again about a 30% margin.

      I need to find €142.86 with a 30% MARK-UP (and not margin)

      So yes, for a 30% margin you multiply by 1.30
      But for a 30% mark-up you multiply by 1.429

      I'm going to repeat myself, but you must not confuse the two.

      Thank you

      PS: I corrected my typo earlier 
      The margin and mark-up rates are NOT the same ;-)
      2