What is correct formula?

  • Thread starter Thread starter dmmatic
  • Start date Start date
D

dmmatic

Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?
 
Hi dmmatic,

16101.35*1.3=20931.75
and
16101.35/0.7=23001.93
so the problem is with your checking.

If you use a formula like =(B1-A1)/A1, that will give you 0.3 (or 30%) for the first calculation, and 0.42857... (or 42.857%) for
the second calculation. The reason you don't get 0.7 or 0.3 for the second calculation is that dividing by 0.7 is equivalent to
multiplying by 1/0.7=1.42857... If you need 0.3 for the second calculation, you could use =-(A1-B1)/B1. Or you could use
=1+(A1-B1)/B1 to get 0.7.

Cheers
 
the first one is correct. the problem is your check formula is not correct.

=1-((B1-A1)/A1)
or simplified to
=2-B1/A1 = 70%

If B1 is 30% more than A1, that does not mean A1 is 70% of B1. It is ~ 76%
(1/1.3). So 1 - 76.9231% is approximately 23%, which is what you are seeing
with your check formula.

in your second calculation, you are increasing A1 by ~ 43%
 
Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?
Click to expand...

I see you have an answer but you might find this link helpful.

http://www.mrhvac.com/download/free/marginmarkup.htm

It explains the difference between markup and gross margin percentage.
An important concept if you are pricing product.

gls858
 
Don't forget to check your other thread, too.

Can someone please explain me what is correct formula i excel.....I
need to markup or increase A1 for 30%

A1=16101.35
=A1*1.3 and that is 20931.75 (B1)
when I go to check =1-(A1/B1) i get 23%

--------------------------------------------------------

A1=16101.35
=A1/0.7 and that is 23001.93 (B1)
when I go to check =1-(A1/B1) i get 30%

So what is correct?
Click to expand...
 
Back
Top