Percentage Profit workings?

From what it seems to be that you want to do, you would exchange the Ms and Ds in your forumla.

Am I missing something?

Jerry

Your formula calculates the markup as a percent of the retail price. For your question, you need the markup as a percent of the cost price:

=(M464-D464)/(D464)

(with the cell formatted as percent rather than using *100)

You want to calculate the retail price by applying a markup to the cost price. This markup is a percentage of the cost price, not the retail price, so 33% will give you a lower result. The correct markup, as a percent of the cost, is 50%

B2: Net price, C2: Markup, D2: retail price

D2: =B2*(1+C2)

Cells in column B and D are formatted to show currency values, with two decimal places. The actual calculated value in D2 is 0.1064

Column C's formatting is set to Automatic. entering the number with a percent sign automatically formats the cell as percent (and changes the value entered from 33 to 0.33 (in C2).

Regards,

Barry

Formula in M464:

=D464+(D464*30/100)

I think...

Hi PflaumeGrau,

Please explain what you are trying to do.

For M464, I want this to be the sum

Do you want the sum of Column M, or the sum of Row 464? Or something else?

Look again at Barry's message:

Your formula calculates the markup as a percent of the retail price. For your question, you need the markup as a percent of the cost price.

Please give an example.

Regards,

Ian.

Sorry, I don't understand what you're trying to achieve. Do you want

a) A formula that calculates 30% profit (ie retail mark-up) on the cost price? That's D464+(D464*(30/100))

b) A formula that calculates the percentage profit given both the cost price and the retail price? That's ((M464-D464)/M464)*100.

c) Something else?

Hi,

Do you want to calculate the original cost price from the final retail price and a known percentage mark-up?

This is:

(RETAIL/(100+MARKUP))*100

From your original post, (M-D)/(M*100) = Markup

I postulate that that formula is incorrect. It should be 100*(M-D)/M

From a later post, desired Markup = 30 (not 30% which would be = 0.30)

Using algebra,

100 * (M - D) / M = Markup

100 * (M - D) = Markup * M

M * (100 - Markup) - 100 * D = 0

M * (100 - Markup) = D * 100

M = 100 * D / (100 - Markup)

M464 = 100 * D464 / (100 - 30)

Or, if you want to use Markup = 30% = 0.30,

(M - D) / M = Markup

M - D = M * Markup

M * (1 - Markup) = D

M = D / (1 - Markup)

M464 = D464 / (1 - 30%)

or

M464 = D464 / (1 - 0.30)

First off, your formulas in F4 and H4 and I4 are incorrect. Your return on sales (profit %) in F4 should be

(3.30 - 1.60)/3.30 = 0.5152 = 52% (rounded), not 0.52%

See my previous posts. One of them has the formulas you need to get you started. Which one you use depends on whether you will enter profit/markup as a percentage or a whole number. I think my second post is the one you want.

I used your term "markup" in my previous posts because that was the term you used. It is really "return on sales" or "profit on sales" or simply "profit", though the last term is not as descriptive and could be misinterpreted. "Markup" is actually "profit on cost"