Pricing Calculations
Markup and Margin Calculations
Sales work often involves calculating the various relations between markup, margin, selling price and costs. Markup is defined as the difference between selling price and cost, divided by the cost. Margin is defined as the difference between selling price and cost, divided by selling price. In other words, markup is based on cost and margin is based on selling price.
The following keystroke sequences are given to readily make these calculations on the
CALCULATE | GIVEN | KEYSTROKES |
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Selling Price | Cost & Markup | Key in cost, | , key in markup (in %), |
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Selling Price | Cost & Margin | Key in cost, | 1 | , key in margin | |||
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Cost | Selling Price & | Key in selling price, |
| 1 | , key in |
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Markup |
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| markup (in %0, |
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Cost | Selling Price & | Key in selling price, |
| 1 | , key in |
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Margin |
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| margin (in %0, |
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Markup | Cost and | Key in cost, | , key in selling price, | . | |||
Selling Price | |||||||
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Markup | Margin | Key in margin, |
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Margin | Selling Price & | Key in selling price, |
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Cost |
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Margin | Markup | Key in markup, |
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Example 1: If the cost of an item is $160 and the margin is 20%, what is the selling price? What is the markup?
Keystrokes Display
160 |
| 160.00 | Cost. |
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1 | 20 | 20.00 | Margin (%). |
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| 200.00 | Selling price. |
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20 |
| 20.00 |
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1 |
| 25.00 | Markup (%). |
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93
