Working out a sales price with a GP%

[TotallySport]

Hi

I know how to work out the GP% when I have the price I want to sell it at, eg if I sell something for £30 in vat.

So i take vat off which leaves me £25.52, i bought the item for £15, so the gp% is

[Gross Profit Ratio = (Gross profit / Net sales) × 100]
(10.52/25.52)*100=41% (i hope)

So if I had something I purchased for £15 and I wanted to sell it with a 41% GP how do I work that out?

Thanks in advance

[oldeagleeye]

A lot of people confuse mark-up with GP which is a bad mistake.

Your mark-up for instance is almost 59%. Your GP however is a much lower 41%. Give or take a few pence.

That is my brain is up to it at the mo.

Rob

[drounding]

(SP - CP) / SP = GP / 100

Where:

CP = Cost Price excluding VAT
SP = Selling Price excluding VAT
GP = Gross Profit percentage
SPV = Selling Price including VAT
VR = VAT Rate percentage

Transposing then:

SP = (100 * CP) / (100 - GP)

Then add VAT to the selling price (SPV) it becomes

SPV = SP + (SP * (VR / 100))

[drounding]

For a GP of 41% you can simply multiply the cost price excluding VAT by 2 to get the selling price including VAT.