Enter the item cost ($) and the margin percentage (%) into the Margin Price Calculator. The calculator will evaluate and display the Margin Price.
Margin Price Formula
The following formula is used to calculate the Margin Price.
MP = IC / (1-M/100)
- Where MP is the Margin Price ($)
- IC is the item cost ($)
- M is the margin percentage (%)
How to Calculate Margin Price?
The following example problems outline how to calculate Margin Price.
Example Problem #1:
- First, determine the item cost ($).
- The item cost ($) is given as: 500.
- Next, determine the margin percentage (%).
- The margin percentage (%) is provided as: 20.
- Finally, calculate the Margin Price using the equation above:
MP = IC / (1-M/100)
The values given above are inserted into the equation below:
MP = 500 / (1-20/100) = 625.00 ($)
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) = ?
