I was told I could calculate 25% profit by multplying .20 by the figure I want to show 25% profit on.?

Answer 1

Ernie Fergler gave the best explanation of how to create a 25% profit margin. The question you asked leads me to believe that the items in question might already be priced at retail and you're trying to calculate cost based on a 25 percent return, in which case you would multiply by .20.

Here's why:

Take a look at Ernie Fergler's response and then do it in reverse.

You have an item that sells for $125 but you need to figure out its unit cost based on a 25% profit margin. That means that the the retail price is the unit cost plus 25%.

25 percent of the unit cost times 5 equals the price at retail. Now, dividing the retail price by five will give you 20 percent of the retail price, which is also the profit margine. See below...

$125 divided by 5= $25 (the mark-up on your item)

$125 times .20=$25 (the mark-up on your item).

Answer 2

No, that would be 20%. To find 25% of x, multiply x by .25

Answer 3

Profit means the difference between the sales price and the wholesale price. If X is the wholesale price, and you want to show a profit of 0.25X for your 25%, then the retail price is 1.25X. For example, if wholesale price is $100, then you need to sell at $125 to get a 25% profit on the wholesale price.

Answer 4

not .20 but .25, .20 would be 20%

Answer 5

no, you would multiply it by .25, because 25% really means 25 out of 100, which is .25

Answer 6

use a calculator, add 25% to whatever your number is, or multiply the number by .25.

Answer 7

Example; something is 5.00, you want to mark it up 25%, 5.00 x 1.25= 6.25. That would be your selling price. That gives you a 25% mark-up. Take price x 1.25 =