Calculating Sale price from cost and Margin

Mr T

New Member
Joined
Jul 8, 2003
Messages
4
Hi all,
I need to calculate some sale prices based on original cost 24.9 and margin 85%. I know this is really simple but i am having a monday mental block
 

Excel Facts

When they said...
When they said you are going to "Excel at life", they meant you "will be doing Excel your whole life".
This is the correct answer above:

Formula is:
Sell Price = Cost / (1- Margin %).
In your example, 24.9/(1-.85) will give you a selling price of 166.

Here is the excel function: =A2/(1-B2) where A2=cost and B2=margin% (in decimal form)


(isn't that a high margin Mr. T? you're lucky to be able to do that)

100/15 * cost is the same as 24.9 * 100/(100-85) which works but is complicated.

Sell Price = Cost * (1+ Margin %) does not work.
 
Upvote 0
This is the correct answer above:

Formula is:
Sell Price = Cost / (1- Margin %).
In your example, 24.9/(1-.85) will give you a selling price of 166.

Here is the excel function: =A2/(1-B2) where A2=cost and B2=margin% (in decimal form)


(isn't that a high margin Mr. T? you're lucky to be able to do that)

100/15 * cost is the same as 24.9 * 100/(100-85) which works but is complicated.

Sell Price = Cost * (1+ Margin %) does not work.




I'm sorry but Sell Price = Cost * (1+ Margin %) DOES work and shows the correct value. For example:

£5 * (1+20%) = £6
20% of £5 = £1
 
Upvote 0
I'm sorry but Sell Price = Cost * (1+ Margin %) DOES work and shows the correct value. For example:

£5 * (1+20%) = £6
20% of £5 = £1

You bloody better be sorry, because you're WRONG.

Thanks for wasting 15 mins of my time with your confusion.

This is profit % not margin %
 
Upvote 0
Hi all,
I need to calculate some sale prices based on original cost 24.9 and margin 85%. I know this is really simple but i am having a monday mental block
I know I am late to this thread, but I stumbled across this post and I figured I'd put the correct information for anyone else looking. Margin % = (Cost-Retail)/Retail so if we wanted to calculate the Retail price of an item based off a margin given we would follow a formula =24.9/(1-.85) this would give you the sale price of $166. Now if you were in a retail company that insisted on everything ending in .*9 then you could build additionally onto this like such =(MROUND(24.9/(1-.85),.10)-0.01)
 

Attachments

  • Margin.png
    Margin.png
    6.6 KB · Views: 740
  • Rouded_Margin.png
    Rouded_Margin.png
    8.4 KB · Views: 736
Upvote 0

Forum statistics

Threads
1,213,492
Messages
6,113,967
Members
448,537
Latest member
Et_Cetera

We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.
Allow Ads at MrExcel

Which adblocker are you using?

Disable AdBlock

Follow these easy steps to disable AdBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

Disable AdBlock Plus

Follow these easy steps to disable AdBlock Plus

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back
Back
Top