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Calculate sales price with 2 commission options and same net profit

  1. #1
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    Calculate sales price with 2 commission options and same net profit

    I am trying to figure out how to automatically calculate the sales price of a home where the net profit for the seller is the same based on two commission scenarios. I can do it using a manual process but that is tedious and does not allow me to quickly evaluate multiple commission options. Attached is an excel sheet I created that shows how I am doing it now, but hoping there is a formula I can use to eliminate the manual step. It is really a math and formula question.

    Thank you in advance.
    Attached Files Attached Files

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    Re: Calculate sales price with 2 commission options and same net profit

    A quicker way to get the value would be to use the What If Analysis on the Data tab.
    1) Select Cell G6,
    2) Select the What If Analysis icon,
    3) Choose Goal Seek
    4) Set Cell window should already display G6 (but type it in if it doesn't),
    5) Type 237500 in the To Value window,
    6) Place the cursor in the By Changing Cell window and select cell G11,
    7) Press OK
    If you are really needing this to be done by a formula, I would think that the formula should be placed in G11.
    Let us know if you have any questions.
    Consider taking the time to add to the reputation of everybody that has taken the time to respond to your query.

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    Re: Calculate sales price with 2 commission options and same net profit

    You mean like this?

    A
    B
    C
    D
    1
    Price1
    $ 250,000.00
    B1: Input
    2
    Commission1
    5%
    B2: Input
    3
    Profit1
    $ 237,500.00
    B3: =B1*(1-B2)
    4
    Commission2
    5.50%
    B4: Input
    5
    Price2
    $ 251,322.75
    B5: =B3/(1-B4)
    6
    Profit2
    $ 237,500.00
    B6: =B5*(1-B4)
    Entia non sunt multiplicanda sine necessitate

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    Re: Calculate sales price with 2 commission options and same net profit

    I will agree with JeteMc - Goal Seek is probably the easiest -- especially if this is a one time or occasional task.

    If this is a frequent task that wants to be automated, I would solve the equation algebraically for the desired "unkown", then program the resulting formula into G11 (assuming G11 is the desired unkown). If I reverse engineered the algebra correctly, G4=C4+C4*C8-D4*D8+G11. Solving for any of these values/cells should be straightforward.
    Quote Originally Posted by shg
    Mathematics is the native language of the natural world. Just trying to become literate.

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    Re: Calculate sales price with 2 commission options and same net profit

    This is exactly what I was looking for. Thanks!

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    Re: Calculate sales price with 2 commission options and same net profit

    Thank you. The formula I was looking for was the one shg shared below.

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    Re: Calculate sales price with 2 commission options and same net profit

    You're welcome.

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    Re: Calculate sales price with 2 commission options and same net profit

    Thank you. The formula I was looking for was the one shg shared.

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