What is correct formula?

[dmmatic]

Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?

 

[macropod]

Hi dmmatic,

16101.35*1.3=20931.75
and
16101.35/0.7=23001.93
so the problem is with your checking.

If you use a formula like =(B1-A1)/A1, that will give you 0.3 (or 30%) for the first calculation, and 0.42857... (or 42.857%) for
the second calculation. The reason you don't get 0.7 or 0.3 for the second calculation is that dividing by 0.7 is equivalent to
multiplying by 1/0.7=1.42857... If you need 0.3 for the second calculation, you could use =-(A1-B1)/B1. Or you could use
=1+(A1-B1)/B1 to get 0.7.

Cheers

 

[JMB]

the first one is correct. the problem is your check formula is not correct.

=1-((B1-A1)/A1)
or simplified to
=2-B1/A1 = 70%

If B1 is 30% more than A1, that does not mean A1 is 70% of B1. It is ~ 76%
(1/1.3). So 1 - 76.9231% is approximately 23%, which is what you are seeing
with your check formula.

in your second calculation, you are increasing A1 by ~ 43%

 

[gls858]

Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?

I see you have an answer but you might find this link helpful.

http://www.mrhvac.com/download/free/marginmarkup.htm

It explains the difference between markup and gross margin percentage.
An important concept if you are pricing product.

gls858

 

[Dave Peterson]

Don't forget to check your other thread, too.

Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?