# Microsoft Office Application Help - Excel Help forum > Excel Formulas & Functions >  > [SOLVED] How do I figure out a pre-tax amount when I know the final total?

## amk005

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?

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## Richard Schollar

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

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## Bill Kuunders

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" <amk005@discussions.microsoft.com> wrote in message
news:C48B6E27-1A0D-4F96-ACA6-64C789726AB0@microsoft.com...
>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?

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## Peo Sjoblom

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" <amk005@discussions.microsoft.com> wrote in message
news:C48B6E27-1A0D-4F96-ACA6-64C789726AB0@microsoft.com...
>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?

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## amk005

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?

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## Katydid6387

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!





> Tax rate in B1 and gross amount in A1
> 
> =A1/(1+B1)
> 
> --
> 
> Regards,
> 
> Peo Sjoblom
> ...

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## qdino73

> 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)
> ...



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)

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## jeffreybrown

@qdino73,

Did you see the date on this thread...over six years ago!   :Wink:

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## DawieP

Wow, this is still useful today  :P

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