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a gross up or margin calculation is done when we know a net number but want to calculate the gross number you have to be careful because the terms gross up margin or markup are sometimes used interchangeably but they can mean different things so you have to be clear on what type of a calculation youamp;#39;re doing we would use the gross up method when weamp;#39;re working in retail and wanting to use the retail method for markup or when we are calculating fringe benefits for the purposes of taxation so if we know the gross number and weamp;#39;re trying to solve for net so if we know the net the gross number it would just be gross times 1 minus whatever percentage weamp;#39;re dealing with so then if we solve if we solve for growth using algebra it must be the net divided by 1 minus the percentage letamp;#39;s consider an example to understand this a little bit better the employer i used to work for would give out prizes for when we went above and beyond and one time i was given
