• IC is the item cost ($) • M is the margin percentage (%) ## How to Calculate Margin Price? The following example problems outline how to calculate Margin Price. Example Problem #1: 1. First, determine the item cost ($).
1. The item cost ($) is given as: 500. 2. Next, determine the margin percentage (%). 1. The margin percentage (%) is provided as: 20. 3. Finally, calculate the Margin Price using the equation above: MP = IC / (1-M/100) The values given above are inserted into the equation below: MP = 500 / (1-20/100) = 625.00 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

item cost (\$) = 600

margin percentage (%) = 30

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

MP = IC / (1-M/100) = ?