+ Reply to Thread
Results 1 to 9 of 9

How do I figure out a pre-tax amount when I know the final total?

  1. #1
    amk005
    Guest

    How do I figure out a pre-tax amount when I know the final total?

    I am trying to figure out a formula to figure out the pre-tax amount. I have
    a final total and know the tax percent. How do I use these to figure out the
    price before tax is added?

  2. #2
    Valued Forum Contributor Richard Schollar's Avatar
    Join Date
    05-23-2006
    Location
    Hampshire UK
    MS-Off Ver
    Excel 2002
    Posts
    1,264
    If you have:

    A times (1-B) equals C

    where A is gross, B is tax rate (say 30%) and C is net (say $70) then it follows that:

    A = C/(1-B)

    or A = 70/(1-0.30)

    A=100

    Does this help you with your problem?

    Richard

  3. #3
    Bill Kuunders
    Guest

    Re: How do I figure out a pre-tax amount when I know the final total?

    one way

    A1= gross amount
    B1 = tax percentage
    net amount =
    =A1/(100+B1)*100

    use general formats
    i.e.tax percentage = 12

    --
    Greetings from New Zealand
    Bill K
    "amk005" <[email protected]> wrote in message
    news:[email protected]...
    >I am trying to figure out a formula to figure out the pre-tax amount. I
    >have
    > a final total and know the tax percent. How do I use these to figure out
    > the
    > price before tax is added?




  4. #4
    Peo Sjoblom
    Guest

    Re: How do I figure out a pre-tax amount when I know the final total?

    Tax rate in B1 and gross amount in A1

    =A1/(1+B1)

    --

    Regards,

    Peo Sjoblom

    Excel 95 - Excel 2007
    Northwest Excel Solutions
    www.nwexcelsolutions.com
    "It is a good thing to follow the first law of holes;
    if you are in one stop digging." Lord Healey


    "amk005" <[email protected]> wrote in message
    news:[email protected]...
    >I am trying to figure out a formula to figure out the pre-tax amount. I
    >have
    > a final total and know the tax percent. How do I use these to figure out
    > the
    > price before tax is added?




  5. #5
    amk005
    Guest

    RE: How do I figure out a pre-tax amount when I know the final total?

    Thank you Richard and Bill! You both posted the same formula, which is
    exactly what I needed! Thanks again.

    "amk005" wrote:

    > I am trying to figure out a formula to figure out the pre-tax amount. I have
    > a final total and know the tax percent. How do I use these to figure out the
    > price before tax is added?


  6. #6
    Registered User
    Join Date
    07-03-2012
    Location
    Georgia, USA
    MS-Off Ver
    Excel 2007 at home, 2010 at office
    Posts
    3

    Re: How do I figure out a pre-tax amount when I know the final total?

    This helped me so much!!!!!
    I wish I would have understood it, and had excel, 35 years ago. (I have a mental block with Y and X)
    Thanks!

    Quote Originally Posted by Peo Sjoblom View Post
    Tax rate in B1 and gross amount in A1

    =A1/(1+B1)

    --

    Regards,

    Peo Sjoblom

    Excel 95 - Excel 2007
    Northwest Excel Solutions
    www.nwexcelsolutions.com
    "It is a good thing to follow the first law of holes;
    if you are in one stop digging." Lord Healey


    "amk005" <[email protected]> wrote in message
    news:[email protected]...
    >I am trying to figure out a formula to figure out the pre-tax amount. I
    >have
    > a final total and know the tax percent. How do I use these to figure out
    > the
    > price before tax is added?

  7. #7
    Registered User
    Join Date
    10-28-2012
    Location
    Albuquerque
    MS-Off Ver
    Excel 2003
    Posts
    1

    Re: How do I figure out a pre-tax amount when I know the final total?

    Quote Originally Posted by Richard Schollar View Post
    If you have:

    A times (1-B) equals C

    where A is gross, B is tax rate (say 30%) and C is net (say $70) then it follows that:

    A = C/(1-B)

    or A = 70/(1-0.30)

    A=100

    Does this help you with your problem?

    Richard
    I wouldn't trust this method. It usually turns out an answer that's close but not completely accurate to the amount before tax i.e. 1 or so dollars off.

    This model gives you a decimal from which you can round up to the correct amount before tax:
    (this model uses a tax of %30 and an amount of $20 after tax as an example)

    1. First, make sure you're tax percentage is in decimal form (30%=30/100=0.3)

    2. Add 1 to your decimal amount from above (1+0.3=1.3)

    3. Divide the amount after tax by your figure from above (20/1.3=15.384615...)

    4. Finally, round your answer to determine the amount before tax ($15.39)

    You can check your answer by figuring out the total with tax (15.39*0.3=4.617) then (4.617+15.39=20.007≈$20)

  8. #8
    Forum Moderator jeffreybrown's Avatar
    Join Date
    02-19-2009
    Location
    Cibolo, TX
    MS-Off Ver
    Office 365
    Posts
    10,316

    Re: How do I figure out a pre-tax amount when I know the final total?

    @qdino73,

    Did you see the date on this thread...over six years ago!
    HTH
    Regards, Jeff

  9. #9
    Registered User
    Join Date
    09-24-2009
    Location
    South Africa
    MS-Off Ver
    Excel 2003
    Posts
    1

    Re: How do I figure out a pre-tax amount when I know the final total?

    Wow, this is still useful today :P

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Search Engine Friendly URLs by vBSEO 3.6.0 RC 1