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Markups & Margins

Markups & Margins

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Markups & Margins

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In Evopos we have the ability to change prices by a formula or a set price

Because of issues regarding priorities in brackets, it is normally simpler to to just use multiply in formulas. For example:

To add a % onto the price

Add 15%  - *1.15

Add 5% - *1.05

To deduct a % from a price

Deduct 15% - *0.85

Deduct 5% - *0.05

To remove Tax or a Markup that has already been applied

Remove 10% - *0.90909091

Remove 17.5% - *0.8510638

Remove 20% - *0.83333334

Excl = (Incl / (Tax % + 100)) * 100 (General formula)

(Note: The fixed numbers are not always exact to to multiple decimal places)

More Complicated Formulas  

A Mark-up is typically used when starting from a Cost price (eg: the mark-up of 50% on a cost of 8.00 is 4.00 which would give a selling price of 12.00). Or adding Tax to an Excl price

A Margin is typically used when starting from a selling price (eg: the Margin of 50% on a selling price of 12.00 is 6.00 which would give a cost of 6.00). This is also called a Discount. Or taking Tax off an inclusive price.

The following standard formulas for calculating Mark-ups and Margins are as follows (Note: * = multiply, / = Divide)

Tax Formulas

Example

Markup: Incl = Excl * ((Tax % / 100)  + 1)  

240 = 200*((20 /100)+1)

Markup: Tax = Excl * (Tax % / 100)

40 = 200*(20/100)

Margin: Excl = (Incl / (Tax % + 100)) * 100

200 = (240/(20+100))*100

Margin: Tax = (Incl * Tax %) / (Tax % +100)

40 = (240*20)/(20+100)

Markup Formulas

Example

Sell = Cost * ((Markup% / 100)  + 1)        

240 = 200*((20/100)+1)    or 200*((0.2)+1    or 8*1.2

Cost = (Sell / (Markup% + 100)) * 100

200 = (240/(20+100))*100   or (240/120)*100   or  0.2*100

Profit = Cost * (Markup% / 100)

20 = 200*(20/100)    or  200*0.2

Margin Formulas

Example

Sell = Cost / (100 – Margin%) * 100

240 = 200/(100-20)*100

Cost = Sell * (100 – Margin%) / 100

200 = 240*(100–20)/100

Profit = Sell * Markup% / (Markup% + 100)

40 = 240*20/(20+100)

Percentage Formulas

Example

Markup or Margin: %  = (Sell – Cost) / Cost * 100

20 = ((240–200)/200)*100