Need help creating an Excel formla to calculate price before sales tax

[jasontyip@yahoo.com]

Hi, can somebody tell me how to set up a formula that will give me the
BEFORE TAX PRICE given SALES TAX RATE and FINAL PRICE?

For example, I sell 3 apples to Bob for $8. Assuming sales tax is 7%,
I need a formula that will show me what the before tax price is.

I know that the equation on paper would be something like:

BEFORE TAX PRICE + (BEFORE TAX PRICE X 7%) = $8

But how do I set something like this up in Excel so that I can simply
input the FINAL PRICE and have the BEFORE TAX PRICE outputed? Thanks!

Jason

[Domenic]

Assuming that A1 contains your final price, try...

=A1/1.07

or

=A1/(1+B1)

....where B1 contains your sales tax rate, such as 7%.

Hope this helps!

In article <1134171981.441913.170020@f14g2000cwb.googlegroups.com>,
"jasontyip@yahoo.com" <jasontyip@yahoo.com> wrote:

> Hi, can somebody tell me how to set up a formula that will give me the
> BEFORE TAX PRICE given SALES TAX RATE and FINAL PRICE?
>
> For example, I sell 3 apples to Bob for $8. Assuming sales tax is 7%,
> I need a formula that will show me what the before tax price is.
>
> I know that the equation on paper would be something like:
>
> BEFORE TAX PRICE + (BEFORE TAX PRICE X 7%) = $8
>
> But how do I set something like this up in Excel so that I can simply
> input the FINAL PRICE and have the BEFORE TAX PRICE outputed? Thanks!
>
> Jason

[JMay]

Below is content of cells A1:B3:
A1:A2 show content of Cells B1:B2
B3 is simply the Value 8.
A B
1 =B3/1.07 7.48
2 =B1*0.07 0.52
8.00



Hope that helps..

<jasontyip@yahoo.com> wrote in message
news:1134171981.441913.170020@f14g2000cwb.googlegroups.com...
> Hi, can somebody tell me how to set up a formula that will give me the
> BEFORE TAX PRICE given SALES TAX RATE and FINAL PRICE?
>
> For example, I sell 3 apples to Bob for $8. Assuming sales tax is 7%,
> I need a formula that will show me what the before tax price is.
>
> I know that the equation on paper would be something like:
>
> BEFORE TAX PRICE + (BEFORE TAX PRICE X 7%) = $8
>
> But how do I set something like this up in Excel so that I can simply
> input the FINAL PRICE and have the BEFORE TAX PRICE outputed? Thanks!
>
> Jason
>

[Elkar]

Just divide your final price by your tax rate + 1. So, let's assume your
Final Price is in cell A1. Your formula would be:

=A1/1.07

HTH,
Elkar



"jasontyip@yahoo.com" wrote:

> Hi, can somebody tell me how to set up a formula that will give me the
> BEFORE TAX PRICE given SALES TAX RATE and FINAL PRICE?
>
> For example, I sell 3 apples to Bob for $8. Assuming sales tax is 7%,
> I need a formula that will show me what the before tax price is.
>
> I know that the equation on paper would be something like:
>
> BEFORE TAX PRICE + (BEFORE TAX PRICE X 7%) = $8
>
> But how do I set something like this up in Excel so that I can simply
> input the FINAL PRICE and have the BEFORE TAX PRICE outputed? Thanks!
>
> Jason
>
>