Calculating gross when net is known

  • Thread starter Thread starter placerpone
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placerpone

Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net
 
Hi,
I am lost here usually you have your gross less your taxes = Your net

assuming gross is in a1, tax in b1(calculated based on 10% taxes) in c1 the
net will be

=a1-b1

Now if you know your net to get your gross will be

=c1/0.90

0.90 comes from 1-0.10 taxes
 
Well, it depends what your tax rate is. Suppose it is 10% (i.e. 0.1),
then:

Net * 1.10 = Gross

Hence,

Net = Gross / 1.10

or:

Net = Gross / (1 + tax_rate)

Hope this helps.

Pete
 
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