Mark up and Margin

[Guest]

I need a formula to produce a selling price when cost is known and desired
gross margin (on sales) is an input variable.

For example, cost equal $60, desired gross margin (percent) equals 40; the
result would be $100

Can you help a rookie?

 

[Bill Kuunders]

A1 is cost price
B1 is percentage markup entered as a % i.e. 40% or as a general number
0.4

enter in C1

=A1/(1-B1)

 

[Guest]

Perfect Bill K - thanks!

A1 is cost price
B1 is percentage markup entered as a % i.e. 40% or as a general number
0.4

enter in C1

=A1/(1-B1)

 

[Gord Dibben]

Cost = $60

Margin is 40%

Result would be $84 in my estimation.


Gord Dibben Excel MVP