selling price formula (2023)

Every day we live different situations where we need to calculate or compare things. In particular, situations involving the purchase or sale of goods. The sell price is used to sell the item at a specific price and can be calculated using the sell price formula. The amount that the buyer pays to purchase the product is called the selling price. The actual selling price is the price the buyer pays to purchase a product or service. This is the price over cost of goods and includes a profit percentage. If the seller wishes, he can also keep the selling price similar to the cost price, in case the buyer does not want to make a profit. Determining the selling price is a very delicate matter, as the sale of a product depends a lot on it. We can calculate the selling price in different ways and formulas.

the basic formula

SP = CP + Profit


SP = selling price

PC = cost price

This chapter looks at the selling price and its role in calculating the profit and loss percentage. We will also learn the difference between ask price and marked price. We will also learn how to calculate the selling price of a product using different formulas. There are several examples that help us to better understand the selling price of an object.

Important selling price formula

  1. Selling price = cost price + profit

    (Video) How to Find Selling Price - Easy Trick - With Cost Price and Markup

  2. Sale price = list/marked price - discount

  3. Selling price = (100+% profit)/100 × Cost price

  4. Selling price = (100% loss)/100 × Cost price

Other important formulas related to the selling price



cost price

Sale price - Profit

To benefit

Selling price - Cost price


Cost Price - Sale Price

% Profit

Profit/cost price × 100

% Loss

Loss/Cost × 100

Selling price vs. marked price

The marked price, also known as the list price, is the price that a seller explains to the buyer, while the ask price is the price that the seller actually receives from the buyer following a bargain or deal. As a rule, the selling price is lower than the declared price. However, sometimes the selling price and the market price can also be the same. A fixed price agreement, i.e. H. The shopkeeper who does not offer discounts or price reductions of any kind is an example.

Calculate the selling price per unit

Below is the step-by-step procedure to calculate the selling price per unit:

  • Identify the total cost of all units purchased

  • Divide the total cost by the number of units purchased to get the cost price.

  • Use the selling price formula to find the final price, i.e. ie: SP = CP + profit margin

    (Video) How to Calculate Selling Price - With Percent Markup and Cost Price - Easy Trick

  • The margin is then added to the cost of goods to determine reasonable prices.

To find the price per unit on the income statement, divide the sale by the number of units sold or quantity sold to find the price per unit.

Example: if annual sales are $80,000 and 2,000 units sold, the price per unit will be 40 rupees (80,000 divided by 2,000).

How to calculate Cost Plus prices

Awardis the difference between the cost of an item and its selling price. It is usually presented as a percentage of costs, depending on the type of industry.

Margin also known as Gross Profit) = Selling Price – Cost of Production (COGS).

The margin and markup move together. For example, a markup of 40% always equates to a profit margin of 28.6%, while a markup of 50% always equates to a margin value of 33%.

cost price

The cost price is actually the final price at which the seller buys the product or service. Then he adds a percentage of the profit. The list price or marked price is the price a seller sets after adding the required profit percentage.

solved examples

Example:Maria marks all her products 30% above cost and offers a 5% discount off the marked price. She thinks she will make a 20% profit. What do you think of the profit percentage she earns?


(Video) Calculating Selling Price

The cost price of the products is 100.

So List Price/Marked Price = ₹100 + 30% of Cost Price.

= 100 + 30

= 130

Now Sale Price = Listing/Marked Price – Discount

= 130 – 5% of 130 = 130 – 6.5

= 123,5

Therefore, Profit = SP-CP

= 123,5 – 100 = 23,5

(Video) Excel Magic Trick 285: Markup On Sell Price Formula

Therefore, the profit percentage she earns is less than 20%.

Example:A new retailer on the market has marked all of its merchandise 50% above cost, believing it would still make a 25% profit, and is offering a 25% discount off the list price. Find out your real profit from sales?


Let cost price = Rs. 100

So list price = Rs. 150

Therefore, selling price = 75% of Rs. 150

= Rs. 112,50.

From this we can conclude that the % profit he made is 12.50%.


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