In sales, it is often necessary to calculate the selling price based on the known cost of an item and the desired gross margin of the store or company. You can calculate the selling price you need to establish (revenue) in order to achieve a desired gross margin on a known product cost. Also, will calculate mark up percentage on the product cost and and, the dollar value of the gross profit. Enter the original cost and your required gross margin to calculate selling price, mark up and gross profit. This calculator is the same as our Mark Up Calculator.
* Price (or Selling Price) = Revenue
- To calculate the selling price or revenue R based on the cost C and the desired gross margin G, where G is in decimal form:
- R = C / ( 1 - G)
- The gross margin is the Profit divided by the selling price or revenue R
- G = P / R
- So, the gross profit P is the selling price or revenue R times the gross margin G, where G is in decimal form :
- P = R * G
- The mark up percentage M, in decimal form, is gross profit P divided by cost C.
- M = P/ C
- M * 100 will change the decimal to a percentage.
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