Reverse Margin Calculator

Formula

To calculate the reverse margin sell price:

\[ RMS = \frac{C}{1 - \left(\frac{MP}{100}\right)} \]

Where:

$RMS$ is the Reverse Margin Sell Price ($)
$C$ is the cost of the product ($)
$MP$ is the margin percentage (%)

What is a Reverse Margin?

A reverse margin is the selling price required to achieve a specific profit margin given the cost of the product. It is calculated by considering the desired margin percentage and the product's cost.

Example Calculation

Let's assume the following values:

Cost of the Product ($C$) = $50
Margin Percentage ($MP$) = 20%

Using the formula:

\[ RMS = \frac{50}{1 - \left(\frac{20}{100}\right)} = \frac{50}{0.8} = 62.50 \]

The Reverse Margin Sell Price is $62.50.