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  1. #1
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    Calculating Sales Tax (Excel All versions)

    A new day - a new question, but this is a mathematical one.
    I know how to calculate the sales tax on on item. However how would I go backwards that is from the total break out the amount of sales tax. The following formula:
    =Total*SalesTax
    is in error, since the tax is being calculated on the wrong amount.

    Thanks
    TC

  2. #2
    Plutonium Lounger
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    Re: Calculating Sales Tax (Excel All versions)

    An example: if sales tax is 6%, the total is 106% of the amount w/o tax. So the tax amount is 6/106 of the total.

    When you enter 6% in a cell, Excel stores 0.06 and displays 6%

    If the tax percentage is entered that way: TaxAmount = SalesTax/(1+SalesTax)*Total

    Or, if tax percentage is entered as 6 (without %): TaxAmount = SalesTax/(100+SalesTax)*Total

  3. #3
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    Re: Calculating Sales Tax (Excel All versions)

    To get the pre-tax value you divide by (1+ the tax pecentage). To get the tax take the difference, so tax at 15% would give:-

    115 -(115/1.15) = 15

    HTH

    Peter

  4. #4
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    Re: Calculating Sales Tax (Excel All versions)

    I'm not "getting" this - could you explain another way?

    Thanks

  5. #5
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    Re: Calculating Sales Tax (Excel All versions)

    Got it!

    Thanks

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