# Calculate Margins

Discussion in 'Microsoft Excel Misc' started by SeeStation, Sep 19, 2008.

1. ### SeeStationGuest

I need to calculate gross margins and prices at different levels of GM:

Non-Excel Formula to calculate Selling price using gross margin
Selling Price = Cost / (1-GM%)

For example, if your product costs \$100 and the required gross margin is
40%, then your Selling Price = \$100/(1-0.4) = \$100/0.6 = \$166.6

So in my worksheet E16=cost E17=Current Selling Price
I want to put my current GM in F17,
I want to get a selling price for GM at:
15% in G16
20% in H16
25% in I16
30% in J16
35% in K16

Any ideas?

SeeStation, Sep 19, 2008

2. ### FSt1Guest

hi,
you already have the formula
if cost = e16 and gm = f17 then formula in e17 would be
=e16/(1-f17)

the other formula would be much the same except using the % instead of a
cell reference.
in g17, =e16/(1-.15)
in h17, =e16/(1-.2)
in i17, =e16.(1-.25)
ect, ect

regards
FSt1

"SeeStation" wrote:

> I need to calculate gross margins and prices at different levels of GM:
>
> Non-Excel Formula to calculate Selling price using gross margin
> Selling Price = Cost / (1-GM%)
>
> For example, if your product costs \$100 and the required gross margin is
> 40%, then your Selling Price = \$100/(1-0.4) = \$100/0.6 = \$166.6
>
>
> So in my worksheet E16=cost E17=Current Selling Price
> I want to put my current GM in F17,
> I want to get a selling price for GM at:
> 15% in G16
> 20% in H16
> 25% in I16
> 30% in J16
> 35% in K16
>
> Any ideas?

FSt1, Sep 19, 2008

3. ### SeeStationGuest

Thanks for your quick reply. I had figured that one out before I was able to
get back here and mark it as solved.
Sometimes you just have to go back to the old pencil and paper and map it
all out. (or at least NotePad)

"FSt1" wrote:

> hi,
> you already have the formula
> if cost = e16 and gm = f17 then formula in e17 would be
> =e16/(1-f17)
>
> the other formula would be much the same except using the % instead of a
> cell reference.
> in g17, =e16/(1-.15)
> in h17, =e16/(1-.2)
> in i17, =e16.(1-.25)
> ect, ect
>
> regards
> FSt1
>
> "SeeStation" wrote:
>
> > I need to calculate gross margins and prices at different levels of GM:
> >
> > Non-Excel Formula to calculate Selling price using gross margin
> > Selling Price = Cost / (1-GM%)
> >
> > For example, if your product costs \$100 and the required gross margin is
> > 40%, then your Selling Price = \$100/(1-0.4) = \$100/0.6 = \$166.6
> >
> >
> > So in my worksheet E16=cost E17=Current Selling Price
> > I want to put my current GM in F17,
> > I want to get a selling price for GM at:
> > 15% in G16
> > 20% in H16
> > 25% in I16
> > 30% in J16
> > 35% in K16
> >
> > Any ideas?

SeeStation, Sep 19, 2008
4. ### FSt1Guest

hi
i thought that was a tab simple. but glad to try and help anyway.
thanks for the feedback.
regards
FSt1

"SeeStation" wrote:

> Thanks for your quick reply. I had figured that one out before I was able to
> get back here and mark it as solved.
> Sometimes you just have to go back to the old pencil and paper and map it
> all out. (or at least NotePad)
>
> "FSt1" wrote:
>
> > hi,
> > you already have the formula
> > if cost = e16 and gm = f17 then formula in e17 would be
> > =e16/(1-f17)
> >
> > the other formula would be much the same except using the % instead of a
> > cell reference.
> > in g17, =e16/(1-.15)
> > in h17, =e16/(1-.2)
> > in i17, =e16.(1-.25)
> > ect, ect
> >
> > regards
> > FSt1
> >
> > "SeeStation" wrote:
> >
> > > I need to calculate gross margins and prices at different levels of GM:
> > >
> > > Non-Excel Formula to calculate Selling price using gross margin
> > > Selling Price = Cost / (1-GM%)
> > >
> > > For example, if your product costs \$100 and the required gross margin is
> > > 40%, then your Selling Price = \$100/(1-0.4) = \$100/0.6 = \$166.6
> > >
> > >
> > > So in my worksheet E16=cost E17=Current Selling Price
> > > I want to put my current GM in F17,
> > > I want to get a selling price for GM at:
> > > 15% in G16
> > > 20% in H16
> > > 25% in I16
> > > 30% in J16
> > > 35% in K16
> > >
> > > Any ideas?

FSt1, Sep 19, 2008

## Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.