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# How To: Using Desired Gross Profit Percentage to calculate Selling Price

 P: n/a Hi Folks, I *can* calculate the Gross Profit Percentage where both the Cost and SellPrice are known, using the formula: (SellPrice - Cost) / SellPrice = GPP eg (\$24.92 - \$14.95) / \$24.92 = 40% But I wanted to do the reverse of that....to calculate the SellPrice, where only Cost and the desired GPP are supplied. I was struggling with my high-school math, and having a heck of a time with this :) I did try a Google Search on this newsgroup, and came up empty. Then I found this link which does a good job of explaining the theory and math: http://www.mygrossmargin.com/tips.html?nid=1386 Using this info as a guide, I created this function ... which I am posting here in case anyone is interested. Public Function fGetSalePrice(vCost As Double, vDGPP As Double) As Variant '******************************************* 'Name: fGetSalePrice (Function) 'Purpose: 'Author: Don Leverton 'Date: December 15, 2004, 04:16:26 PM 'Called by: 'Calls: 'Inputs: 'Output: '******************************************* On Error GoTo ErrHandler '(Quote from http://www.mygrossmargin.com/tips.html?nid=1386) ' By dividing cost by the inverse of the gross margin ' you wish to achieve, you will arrive at the sell price ' necessary to achieve the desired gross margin. Dim vPrice As Double vPrice = (vCost / (100 - vDGPP)) * 100 fGetSalePrice = Format(vPrice, "Currency") ExitHere: Exit Function ErrHandler: Dim strErrString As String strErrString = "Error Information..." & vbCrLf strErrString = strErrString & "Error#: " & Err.Number strErrString = strErrString & "Description: " & Err.Description MsgBox strErrString, vbCritical + vbOKOnly, "Function: fGetSalePrice" Resume ExitHere End Function -- Don Leverton, Store Manager NAPA / Bellzer Boyz Store # 1529 6320 Imperial Way Olds, Alberta T4H-1M5 ==================== Nov 13 '05 #1