The formulas used in the calculations are:
\[ \text{markup} = \left( \frac{1}{1 - \text{margin}} \right) - 1 \]
\[ \text{profit} = \text{revenue} \times \frac{\text{margin}}{100} \]
This calculator computes the markup percentage and profit based on the input values of margin and revenue. It also shows how to calculate profit using the given formulas.
Let's assume the following:
Calculate the markup percentage:
\[ \text{markup} = \left( \frac{1}{1 - 0.05} \right) - 1 = 0.0526 \approx 5.26\% \]
Calculate the profit:
\[ \text{profit} = 1000 \times \frac{5}{100} = 50 \]
Therefore, the markup percentage is approximately 5.26%, and the profit is $50.
How do I calculate the markup from the margin?
To calculate the markup from the margin, follow these easy steps:
\[ \text{markup} = \left( \frac{1}{1 - \text{margin}} \right) - 1 \]
What is my profit on a $1000 revenue with 5% margin?
The profit would be $50. To find this result, invert the formula we use to calculate the revenue knowing the profit:
\[ \text{revenue} = 100 \times \frac{\text{profit}}{\text{margin}} \]
Find the profit with the following formula:
\[ \text{profit} = \text{revenue} \times \frac{\text{margin}}{100} = 1000 \times \frac{5}{100} = 50 \]
