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)** = ?**