Calculating Net from Gross

[Guest]

I need to be able to calculate the Net price when I only have the Gross
figure. The Gross figure equals Net + 17.5%, but sometimes I need to reverse
this and I don't know the calculation. At present I am using Gross*85.1% but
this is not accuarate in large figures. I have the 2003 version of Excel.
Thank you

 

[Peo Sjoblom]

With gross in A1

=A1/(1+17.5%)

or if you want to round it to the nearest penny


=ROUND(A1/(1+17.5%),2)


--


Regards,


Peo Sjoblom

 

[Guest]

Say the gross is in G1 and the net is in N1

to get the gross from the net, in G1 enter:
=1.175*G1

to get the net from the gross, in N1 enter:
=N1/1.175

 

[Dave O]

The way you're thinking about is tripping you up, I think.

If Gross = Net + 17.5% of Net, you can think of this as
Gross = Net x (1+17.5%)

Then applying a little algebra,
Net = Gross / (1+17.5%)

Dave O
Eschew obfuscation