 ## Calculating Margin & Cost Plus

If you know your cost in dollars and know what you want to sell the product for, we'll calculate what you need to enter for the Margin or Cost Plus values.

### How we calculate those values:

Margin Formulas/Calculations:

The gross profit P is the difference between the purchase price or cost “C” and the selling price “S”.

P = S – C

The mark up percentage “M” is the profit “P” divided by the cost “C”.

M = P / C = ( S – C ) / C

The gross margin percentage “G” is the profit “P” divided by the selling price “S”.

G = P / S = ( S – C ) / S

## Calculating Mark-Up Formulas

### How we calculate those values

The gross profit “P” is the difference between the purchase price or cost “C” and the selling price “S”.

P = S – C

To calculate sell price “S” based on the cost “C” and the desired gross margin “G”, where “G” is in decimal form:

S = C / ( 1 – G)

The gross profit dollars “P” is the sell dollars “S” from the sale times the gross margin “G” percentage, where “G” is in decimal form :

P = S * G

The markup 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.

## Profit Forumulas

Dealer Service Fees are when the manufacturer is selling directly to the client, but is giving you a percentage for a service fee. This generates your cost and margin.

### How we calculate those values

Profit Formulas/Calculations:

The gross margin percentage is the gross profit divided by the revenue

G = P / S, therefore

P = S * G

The gross profit P is the difference between the purchase price or cost “C” and the selling price “S”.

P = S – C, therefore

C = S – P

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.

## Cumulative Discount Calculator

### How we calculate those values

Cumulative Discount Calculator:

%1 = x
%2 = y
%3 = z
%4 = a
%5 = b

CD=(1-(1-(x/100))*(1-(y/100))*(1-(z/100))*(1-(a/100))*(1-(b/100)))*100

or

Let ‘x%’ and ‘y%’ be the successive discounts on a product, then total discount is given by:

2 Cumulative Discounts

CD= x+y – (xy/100)

Now, assume that ‘x%, ‘y%’ and ‘z%’ be the three successive discounts on a product, then total discount is calculated by first finding the total discount due to ‘x%’ and ‘y%’. Then, overall discount is calculated by calculating total discount between the previous total discount and ‘z%’. this can also be calculated by using the above mention formula twice.

3 Cumulative Discounts

CD= x+y – (xy/100)=f

CD= f+z – (fz/100)

Continue with steps above to calculate 4th discount, and then again for 5th or more discounts

## Calculate List Price from Cost and Discount%

### How we calculate those values

List Price Calculations:

List = Cost/(1-%)

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