Economics
Pricing and profit
Markup, margin, profit, profitability and VAT.
Economics
Gross profit
GP = R − C→EconomicsProfit margin
M = Profit / Revenue × 100%→EconomicsMarkup percentage
M = Profit / Cost × 100%→EconomicsPrice from cost and markup
P = C(1 + M / 100)→EconomicsPrice from target margin
P = C / (1 − M / 100)→EconomicsVAT included in gross amount
VAT = G × r / (100 + r)→EconomicsAdd VAT
G = N(1 + r / 100)→EconomicsReturn on cost
R = Profit / Cost × 100%→EconomicsProfit from revenue and costs
Π = R − VC − FC→EconomicsProfit from contribution margin
Π = CM − FC→EconomicsNet profit after tax
NP = PBT(1 − t/100)→EconomicsTarget profit units from margin
Q = (FC + TP) / CMᵤ→EconomicsRevenue for target profit
R = (FC + TP) / CMR→EconomicsUnits for target net profit
Q = (FC + NP/(1 − t/100)) / CMᵤ→EconomicsPrice for target profit
P = (FC + TP + VC·Q) / Q→EconomicsMinimum price
Pmin = VC→EconomicsFull cost price
P = C + M→EconomicsMarkup on variable cost
N = (P − VC) / VC × 100%→