I have a calculation which I am unable to crack.
Lets say my Cost Price is 300. I want to sell the item at No Profit or No Loss. My total commission/expenses will be 30%. So it means i need to sell the item at 390.
But if I do 390 - 30% = 273.
How can I see the item, so that if I minus 30% to it. My Revenue will still be 300.
the formula you want is
=300/0.7
or
=300/(1-30%)
basically it is 300= x*(1-.30)
where the (1-.30)
is the amount that wants to be kept after the commision of 30%. Solving for x we get the above formula.
You want Sell Price - 30% Sell Price = Cost Price.
Combining the left two, you have 70% Sell Price = Cost Price.
Divide both sides by 70% and you get Sell Price = (1/0.7) Cost Price.
The fraction 1/0.7 is approximately 1.42857.
I was looking for a similar equation/formula, but then I built it in Excel.
So if you have, say, an item with
CostPrice = 200
Then you add a ProfitMargin = 20%
so the
SellPrice = 200 + 20% = 240
Then the reverse equation for this will be
CostPrice = ( SellingPrice * 100 ) / ( ProfitMargin + 100 )
// In your case it should be
CostPrice = ( 390 * 100 ) / ( 30 + 100 )
= 300
See it in action :)