Calculation Question

[Scott]

I have to calculate total tax based on a graduated scale. Let's say I make
$15,000 (in cell A1) and I want to calculate tax in one cell (in cell B1).
The tax rate is such that the first $1,000 is at 0%, the next $2,000 at 10%,
the next $3,000 at 20%, and then anything higher than $6,000 at 25%.

What would the formula look like in cell B1 to calculate the tax expense of
$3,050.

Thanks,
Scott

 

[Mike H]

Scott,

Try this

=SUMPRODUCT(--(A1>{1000;3000;6000}), (A1-{1000;3000;6000}), {0.1;0.1;0.05})

Allin one line if it line wraps
--
Mike

When competing hypotheses are otherwise equal, adopt the hypothesis that
introduces the fewest assumptions while still sufficiently answering the
question.

 

[Ashish Mathur]

Hi,

You may refer to this article which I authored 6 years ago -
http://ashishmathur.com/articles.aspx. Kindly refer to the first article
under PC Quest