Profit margin formulas

Hi All,
This may be a dumbo question or not even the right forum but I have cost price lists from suppliers which I want to calculate the selling price to make certain margins. So an oil filter costs me 1.99 and I want to sell at 3.58 to make 45% so I would have something like I have done on my attached sheet. Problem is I have to use trial and error to work out what the formula figure should be. How can I work out what the cost price cell needs to be multiplied by to give each profit margin e.g 25%, 30% etc? Thanks in advance.

Hello Martin,
=B2*1.8 will give me a GP of 45%. I don't want to add 45% of my cost to that. I want to add the 80 in this instance which means at 3.58£ I have a gross profit of 45%.
I want to do the same to get 30, 40, and 50%. Does that make sense?

Hi Shg,
Martin
I think shg has it. I have been multiplying my cost by 1.6 or 1.7 etc until I got my required margin but the way shg suggests means I should do it using that formula. I'll try it tomorrow thanks.

Originally Posted by shg

Gross margin is measured as a fraction of sell price.

	A	B	C	D
1	Cost	GM	Price
2	$ 1.99	45%	$ 3.62	C2: =A2/(1-B2)

Hi shg, and Martin
what shg has suggested is correct and solves my question thanks. May need to politely request further explanation to understand it works rather than just to copy it. Thanks again.

Thanks Martin,
I think you are referring to mark up rather than profit margin.

Originally Posted by shg

Gross margin is measured as a fraction of sell price.

	A	B	C	D
1	Cost	GM	Price
2	$ 1.99	45%	$ 3.62	C2: =A2/(1-B2)

Hello shg,
Thanks for your solution earlier. I know this is correct but trying to replicate is is a problem in another sheet. Please can you tell me what the 1 inside the bracket in cell D2 refers to

Originally Posted by martindwilson

1 is equal to 100% i should think

True-thanks