# How do you calculate the percentage of profit margin

## Percentage profit - calculate the base value

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The base value is the base price before a percentage profit is added.

Example: An electronics retailer sells a digital camera for 180 euros. Here he achieves a profit of 25 percent based on his purchase price.

What was the retailer's purchase price for the digital camera?

In this example, the question of the basic value arises. As a percentage profit, the dealer adds the percentage of 25 percent. The sales price of 180 euros represents the percentage.

It should be noted here that the percentage profit should not refer to the sales price, but to the purchase price to be calculated as the basic value.

Since the percentage profit is added to the purchase price, this is a percentage increase. Purchase price plus percentage profit thus results in the sales price.

### calculation

The following settings must be made in the percentage calculator for the calculation.
• Mark which value should be calculated:
Select Calculate base value
• Enter the given values ​​as follows:
• Calculation type:Select increase
• Basic value G:- set free -
• Percentage p:25 %
• Percentage P:180
• Then click on To calculate.

(*) Personal names are fictitious and do not refer to real people. A possible match with names of real people is not intended and would be purely coincidental.