Invoice Price Calculator

Formula

To calculate the Invoice Price (IP):

\[ IP = IC + IC \times \frac{PM}{100} \]

Where:

$IP$ is the Invoice Price (dollars)
$IC$ is the Invoice Cost (dollars)
$PM$ is the Profit Margin (percentage)

What is Invoice Price?

The invoice price is the final amount that is billed to a customer for goods or services. It is calculated by adding a profit margin to the invoice cost. This ensures that the business not only covers its costs but also makes a profit.

Example Calculation 1

Let's assume the following values:

Invoice Cost ($IC$) = $500
Profit Margin ($PM$) = 20%

Using the formula:

\[ IP = 500 + 500 \times \frac{20}{100} = 500 + 100 = 600 \text{ dollars} \]

The Invoice Price is $600.

Example Calculation 2

Let's assume the following values:

Invoice Cost ($IC$) = $750
Profit Margin ($PM$) = 15%

Using the formula:

\[ IP = 750 + 750 \times \frac{15}{100} = 750 + 112.50 = 862.50 \text{ dollars} \]

The Invoice Price is $862.50.