How to find selling price with cost and profit margin only
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- เผยแพร่เมื่อ 4 ก.พ. 2019
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How to develop an Excel template to quickly and automatically calculate selling price when you only know the cost and margin%, but not the markup%.
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Watch as I create a fully automated Selling price file in Excel that calculates selling price from cost and margin%. We learn how to calculate markup by converting provided target margin to markup using the conversion formula. You also learn how to convert markup to margin or margin to markup using an easy formula.
We then apply the converted markup percentage to the cost and arrive at our target selling price. We then also add discount and sales commission factors in the calculation. All of the calculations are automated, so the user of the file only needs to change the input assumptions such as target margin %, discount % or sales commission %.
By the time you have watched the video, you will be able to prepare fully automated excel files for calculation of selling price from variable input assumptions such as target margin %, discount % and commission. Do not forget to remember the markup to margin conversion formula, and margin to markup conversion formula. These formulas will help you to always be able to calculate selling prices and profit percentages whenever you need them.
Hope you find the information in the video helpful. If you like to watch more videos in accounting, financial analysis and controller ship, videos that help you directly in doing your job, subscribe to my channel. If you liked the video, I would love if you could LIKE it and leave a comment. If you have any questions or feedback, again leave a comment. Lets stay connected at #learnaccountingfinance.
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Learn how to calculate units to sell at different prices while keeping the same profit ... th-cam.com/video/6eYv1m5nETM/w-d-xo.html
There is a simpler way to do markup based on margin percentage.
Use =A/(1-B). A is your cost and B is the profit margin. So a completed formula would be =15/(1-15%), which makes your answer 17.65.
Jake Johnson's Garage or (15/85)*100
@ Jake Excellent!
Thank you!!
Comment that made sence,not the video
I learned just as much about excel as I did about margins and markups...
Thank you so much for this tutorial. Now I can complete my assignment confidently.
Most helpful video ive ever seen. Not complicated
Thank you.
Thank you! This is just what I needed. Subscribed!
Thank you for sharing❤️
Very well explained
finally, after hours and hours searching for the answer this was the best of the best thank you alot. i appreciate your hard work.
Thank you Reem. I am glad it was helpful.
Very helpful examples, straight to the point.
Thank you. I am glad you found the informatiom useful.
Really Good Channel, A very practical approach to learning. Awesome!
Thank you ORIGINAL. Appreciate the comment.
thank you explained clear and simple
Thanks for this video. Rather useful.
Excellent video - it helped me in my work today. Thanks!
Thanks John Stauter. Glad to hear that.
The video is well organized I actually learn a few thing how to calculate costing and selling price.
Thank you Melawatie.
Hello sir could you help me how to calculate the miscellaneous fee .. for example the tools we use to build the product
Perfect explanation, many thanks!
Thank you.
This is awesome. Thanks man!
You are welcome!
This is very helpful. Thank you so much.
Thank you Tumelo.
This was excellent. I am trying to learn how to do this and this video helped me understand and how to cross check
Thanks.
Glad it was helpful!
Thanks for this vidéo. great help
How can i calculate selling / cost price for divers produits in one containers?
wowww this is well explained thank you
Thank you.
dear sir
if you explain to me for payment of building material cost and work finishing cost
Very Useful, God bless you
Thank you and God bless you too.
Appreciated 👍
very helpful, thanks a million.
Thank you.
Thank you, thank you, thank you
This really helped me understand the concept very well as you're giving practical examples
thank you for explaining it in excel format , kindly share tips to work efficiently with excel too..
Your explanation made these concepts very interesting n easy
Your presentation tips are great
God bless you ,Spread the knowledge
once again this helped a lot
Thanks a lot fathima. I am glad it helped. GOD bless you too.
"Yeah sure give me 5 minutes" ... actually only takes 5 minutes. What a legend!
Hahaha..
Excellent!!!
Glad you like it!
very useful thank you
You are welcome.
thank you very much
You are welcome
How do you calculate the gross profit when there's a discount sale? Lets say over $100 purchase gets 10% off. What will be my profit?
New subbie
Thanks 👍
You are welcome!
I have a question. What if you’re running a produce dept in a grocery store. I want to make a chart that calculates selling price based off margin and cost. However, a case of apples is measured by each apple that comes in that caae. For example, I get a case of honeycrisp apples for $97 and there’s 72 in there. I would like to know how to calculate the selling price at the margin I want. My costs change every week. I would like to just be able to go through and change the cost price every week so I can audit my price at the correct margin. So can you create a video on this?
That is exactly what I want to learn, that area need to be classified. Thanks for asking that hope we will get the answer for that.
@couragemutobaya8706 if I understand correctly, the video already shows how to do that. You can change the cost in the calculation, and set the target margin %, and it should do the calculation for you. May be I am not understanding the question correctly. Can you give an example of the situation you are facing? Thanks
What happened if I ignore the margin and mark-up term. i just add item cost plus the profit i wana to get to be product selling price
No problem in doing that. If you know exactly the profit you want to add to the cost, then you don't need all the calculation.
Thanks great video
Thank you Ikram.
if Cost price is 100 INR and margin is 15% and Commission Referral Fee 17% GST on Referral Fee 18% and Closing Fee 25 INR and GST on Closing Fee 18% Shipping 80 INR, Return 48 INR what will be the selling price. If can possible so please explain with formula.
I have ineterview as a business financial analyst after4 days. I am data scientist. I dont know about financial data. I have watched your video about accouting crash coursu. What shoud i learn now to increase my chance
Preparing for interview really depends on the job description and the organization. However, I would recommend you review all the videos (specially related to income statement analysis and working capital management) in the FP&A checklist here: th-cam.com/play/PLcRqJFBzcNZWuJmu96M_SFbUIHAJ2aLZu.html.
In addition, learn a little about financial ratios, what they mean and how are they calculated? You should also learn a little about Capex or investment analysis (NPV, payback, IRR etc). Highlight your strengths and stay positive. If they selected you for interview, they probably liked what they saw on your resume. Make sure you can give examples of experience mentioned on resume. All the best!
@@LearnAccountingFinance thanks
Why it doesn't work if the margin is over than 100%, for example for margin 150%, can you help to calculate the Target MarkUp? The result will be in negative number, thanks
Good question. Margin is Profit divided by selling price. It can only be above 100% if profit is more than selling price. Profit can only be more than selling price if costs are negative (which is not usually the case). However, if you input negative costs, the calculation will still work. Generally speaking, the profit margin is never 100% or more, unless you are dealing with a special case? Please share.
On the same note, exactly 100% margin would mean the cost is zero. In that case the calculation will give a Division by zero error, but if the costs are zero, and there is only money received for sale, then no calculation is really required, because its not profit, its just free money received.
@@LearnAccountingFinance Thank you
Cost/(1-margin)
If we purchase an item for 28 pounds.. what would the selling price be with a 56% margin?
63.64
But what if the Profit Margin is 100% then the markup will become infinite (cost/(1-Profilt%)) = cost/(1-100%) = cost/(1-1) = cost/0
hahaha! .. thats an interesting question.
But the math still works. The Profit margin will never be 100% unless the cost is zero. Give it a try. No matter how low the cost is and how high the selling price, the profit margin will be less than 100%. It can be 99.999....% but not 100%. This is because 100% profit margin means selling price = Profit.
If the cost is zero, then you are not calculating profit at all because profit is Selling price minus cost, and in this case you have no cost. hence no conversion from margin to markup required. By the way, the formula is Markup % = Margin % / (1 - Margin %).
@@LearnAccountingFinance I'm working on an app in which the user can enter the cost and the profit margin and then I have to calculate the Price and the issue is if the user writes 100% Profit Margin then the calculation gives me the infinite result.
I need to resolve that.
I'm using the formula price = cost / (1 - ProfitMargin%)
Its up to you. You can add an error message when a user enters 100% saying margin % should be a number less than 100%.
Selling Price = Cost/1-GM
There’s not enough details for this to make sense
If $15 is our cost and we are looking to make 15% profit, we can consider that $15 is 85% of the targeted price. So we divide $15/85, to find 1% of the targeted price, then we multiply it by 100%. There you have it. Simple
In this case formula would be (15/85)*100
Pls b auduble
This guy is literally talking while on the toilet.. sounds like youre in the restroom buddy