Parts Markup Calculator - How It Works

This calculator helps HVAC contractors quickly determine the optimal selling price of parts based on the cost price and desired profit margin. It simplifies the process by allowing users to input the cost price of a part and the profit percentage they want to apply.

How the Parts Markup Calculator Works:

1. Cost Price Input: The user enters the original cost price of the part they are purchasing. This represents the amount the contractor paid to acquire the part.
2. Profit Percentage Input: The user then enters their desired profit margin in percentage. This is the amount they want to make on top of the cost price to ensure a profitable sale.
3. Calculation Process:
   • The calculator computes the markup amount by applying the entered profit percentage to the cost price:

   Markup Amount = Cost Price × (Profit Percentage / 100)

   • The selling price is then determined by adding the markup amount to the cost price:

   Selling Price = Cost Price + Markup Amount

4. Results Display: The calculator presents the selling price and the markup amount, giving contractors a clear understanding of how much to charge to meet their profit goals.

This tool helps HVAC professionals ensure they cover their costs and earn a profit, essential for running a successful business.