Math help needed

[ChezCheese:)]

I need the formula to figure out percentage of profit. So say you have an item which costs you $75. You sell it for $400. So your net profit is $325. How do you express the percentage of profit? Is it 325÷75= 433%? Or $400÷75=533%?

(I haven't had enough tea to sort this out, and why Google when I can ask for help from you folks?)

 

[JedidiahStolzfus]

325/400=81.25% profit

 

[fauconnier]

Margin Calculator

Use the online margin calculator to find out the sale price, the cost or the margin percentage itself.

www.omnicalculator.com

 

[ChezCheese:)]

But wait. If I had something which cost $75 and I keystoned it, I would price it at $150. That is 100% mark up. Double the wholesale cost. Very standard.

So if I price it at $400, isn't that 433% markup?

 

[mschwett]

But wait. If I had something which cost $75 and I keystoned it, I would price it at $150. That is 100% mark up. Double the wholesale cost. Very standard.

So if I price it at $400, isn't that 433% markup?

markup and profit aren't the same thing. markup is a percentage of your cost. profit is a percentage of your revenue.

it cost you a buck, total, all in including labor, overhead, expenses, parts, etc. if you sell it for $2, that's a 100% markup. your revenue is $2, of which $1 is profit, which is a 50% profit margin.

 

[Tars Tarkas]

Surprisingly interesting question. So your markup is $325, and your margin is 433%, which is the number you're looking for, I believe.

TT

 

[Art Deco]

325/400=81.25% profit

In your head ? ... good job.