SP = CoS + Profit

or

SP = CoS * (1 + ProfitPercentage)

Solved

Posted on 2012-08-23

Hi, on a spreadsheet i want to work out the missing variable

I know the desired Gross Profit = .65

I know the Cost of Sale = 1.306

How can i derive the sales price using a formula on excel?

Thanks

Seamus

I know the desired Gross Profit = .65

I know the Cost of Sale = 1.306

How can i derive the sales price using a formula on excel?

Thanks

Seamus

7 Comments

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http://www.homeandlearn.co.uk/excel2007/excel2007s7p4.html
```

```
http://office.microsoft.com/en-us/excel-help/about-goal-seek-HP005203894.aspx
```

If it is a percentage, then do you mean you want 65% of the sale price to be profit?

GPP = Gross Profit Percent

SP = Sale Price

CS = Cost of sale

So CS/SP = 1 - GPP

or SP = CS/(1 - GPP)

julianH, in your formula, CoS is 65% greater than SP but the actual percent profit would only be 65/165 or about 39%

SP = CoS * (1 + ProfitPercentage)

SP = 1.306*(1.65) = 2.1549

65% of 2.1549 is about 1.4 but profit is only 2.1549 - 1.306 = 0.8489

When the term Gross Profit is used, it generally refers to the percent of the price, not the percent of the cost.

If he wants a 65% markup, then your formula is the way to go.

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