About Price Calculator (Formula)
The Price Calculator is a tool used to determine the selling price of a product or service based on the cost and desired gross margin percentage. It helps businesses or individuals set prices that will cover costs and provide the desired profit margin.
The formula used to calculate the price is as follows:
Price = Cost + (Cost * (Gross Margin / 100))
In this formula, the cost represents the cost of producing or acquiring the product or service, and the gross margin is the desired percentage of profit to be added to the cost.
To calculate the price, you multiply the cost by the gross margin percentage (converted to decimal form by dividing it by 100), and then add that result to the cost.
For example, if the cost of a product is $50 and you want to have a gross margin of 30%, the price calculation would be:
Price = 50 + (50 * (30 / 100)) = 50 + (50 * 0.3) = 50 + 15 = $65
So, in this case, the selling price would be $65.
The Price Calculator provided in the code above takes the cost and gross margin values as input and uses this formula to calculate the price.