Dustin Crossland
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Calculator - Keep gross margin the same with financing fees or other percentage based variable costs

This calculator is useful when you want to keep your gross margin the same, but need to add financing fees or other variable costs as a percentage of the total price to the cost of the product.

Enter the gross margin dollars you want to keep after fees.
Enter a percent (no need to use a decimal). Example: 22 or 22%.

Why use this?

The initial thought when adding in percentage based costs to the price of your product is to just calculate the fee percentage at the current price and add that to the current price to arrive at the new price. This method, however, is flawed because you will now be taking the same percentage of a higher number, making your gross margin decrease despite the price increase. Using this calculator will ensure you keep the same gross margin even when percentage based variable costs are introduced.