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?
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?
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
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?
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?
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?
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)
@qdino73,
Did you see the date on this thread...over six years ago!
HTH
Regards, Jeff
Wow, this is still useful today :P
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