Help With Margin Formula

J

JR

Hello,
I need help with a margin forumla (calculated from retail). Say I have a
cost of $10.00, and I need the formula to calculate a 40% margin from
retail. So the retail should end up at $16.67. Not sure how to get from
$10.00 to $16.66, I just know the cost and the margin I need to make.

Thanks JR
 
R

Ron Coderre

Try this:

Price = Cost/(1-Margin)

Price = 10/(1-0.4) = 10/0.6 = 16.66

Does that help?

***********
Regards,
Ron

XL2002, WinXP-Pro
 
B

Bernard Liengme

Niek has given the answer. Here is the reason
Cost =C
Price =P
Margin = M

(P-C)/P = M The margin is the profit divide by price
Rearrange this to get:
P-C = P*M
P-P*M=C
(1-M)*P=C
C=P/(1-M)

if you want to work in percentage
C = P/(100%-M%)
best wishes
 
R

Rich Kniatt

i format the cell as % and use this in my cell:

=ROUNDUP(D5/(1-I5),2)

where:
D5 is my cost in $
I5 is where I put the margin.
The 2 gives 2 decimal places
 
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