# Calculation factor

## What is the calculation factor

In Flow Retail, you can define a calculation factor to help automatically suggest a sales price based on the product’s cost price and desired gross margin.

The calculation factor is based on gross margin multiplier, not markup percentage.

### Example

* A calculation factor of 2.5 means you want a gross margin of 60% (because 100 / 2.5 = 40; cost is 40% of the sales price)

#### Let’s say:

* Cost price = 100
* Calculation factor = 2.5

#### Flow Retail will calculate:

Suggested sales price = 100 × 2.5 = 250

This means that for every unit sold at 250, the cost is 100 and your gross profit is 150 — giving you a gross margin of **60%**.

### Summary

* **Cost price × Calculation factor = Suggested sales price**
* Helps you price consistently based on your margin goals
* Particularly useful when importing or adjusting large product catalogs

## Setting the calculation factor

To set a calculation factor for a product, create a product with the following settings:

1. **Type:** Not stock controller

<figure><img src="/files/WWxm7StcUFC5Tersv5KT" alt=""><figcaption></figcaption></figure>

2. **Markup Factor:** The factor you want to apply, for example 1.25 to set the profit margin to 0, if there is a 25% VAT on the product.

<figure><img src="/files/xyVJMZ2ezHs3RyLxsw0c" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
VAT must be included in the calculation. For example, if the item has 25% VAT and the factor is set to **1.25**, the profit margin will be 0.
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.flowretail.com/docs/day-to-day-operations/prices/calculation-factor.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.