Profit formulae

Are you making the profits you should be? / Are you banking your margin?

Here we've listed some of the main calculations you'll need to help understand your profit and loss, and keep track of your main %'s.

For simplification of calculations we've abbreviated the following:

  • GP = Gross Profit
  • SP = Selling Price
  • BP = Buying Price
  • MU = Mark Up

Exclusive of VAT @ 20.00%

1 To calculate GP% when given SP and BP GP% = ((SP-BP) * 100) / SP
2 To calculate MU% when given SP and BP MU% = ((SP-BP) * 100) / BP
3 To calculate SP knowing BP and GP% SP = (BP * 100) / (100 – BP%)
4 To calculate BP knowing GP% and SP BP = (SP * (100 – GP%)) / 100

Inclusive of VAT @ 20.00%

1 To calculate SP knowing BP and GP% SP = ((BP * 100)*1.20.00) / (100 – BP%)
2 To calculate BP knowing GP% and SP BP = ((SP * (100 – GP%))*1.20.00) / 100

  • GP = Gross Profit
  • NP = Net Profit
  • ROC = Return on Capital
Wage % to Turnover
(Wet 8 to 12%) (Wet/Dry 50/50 12 to 18%)(WMC 23%→)
(Cost of Wages * 100) / Turnover
Target GP to actual GP difference to NP
(for wet and/or dry)
Target GP - Actual GP = ?%
Then → Turnover * ?% (Press%Button)
Or Turnover * ?% / 100
Conversion (Net Profit * 100) / Turnover
ROC (Net Profit * 100) / Capital Employed
Comparison of figures year on year in % terms ((Year 2 – Year 1) * 100) / Year 1