Enter the cost ($) and the gross margin (%) into the Price Calculator. The calculator will evaluate and display the Price.
Price Formula
The following formula is used to calculate the Price.
P = C/ (1-GM/100)
- Where P is the Price ($)
- C is the cost ($)
- GM is the gross margin (%)
How to Calculate Price?
The following example problems outline how to calculate Price.
Example Problem #1:
- First, determine the cost ($).
- The cost ($) is given as: 100.
- Next, determine the gross margin (%).
- The gross margin (%) is provided as: 50.
- Finally, calculate the Price using the equation above:
P = C/ (1-GM/100)
The values given above are inserted into the equation below:
P = 100/ (1-50/100) = 200 ($)
Example Problem #2:
For this problem, the variables needed are provided below:
cost ($) = 300
gross margin (%) = 25
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
P = C/ (1-GM/100) = ?
