Formula for calculating gross up amount

Discussion in 'Microsoft Excel Worksheet Functions' started by Fred, Aug 31, 2004.

  1. Fred

    Fred Guest

    Is there a formula that will calculate an amount that will
    represent a specific percentage of a total after adding in
    the additional amount, ie after being grossed up?
     
    Fred, Aug 31, 2004
    #1
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  2. Fred

    hgrove Guest

    Fred wrote...
    >Is there a formula that will calculate an amount that will
    >represent a specific percentage of a total after adding in the
    >additional amount, ie after being grossed up?


    I'm going to guess you mean something along the lines of a net sal
    price P plus x% sales tax = total cost, and you want to find the sale
    tax as a percentage of the total cost, y%. If so,

    y = x / (1 + x)

    where x and y have been converted to decimal fractions

    --
    Message posted from http://www.ExcelForum.com
     
    hgrove, Sep 1, 2004
    #2
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  3. Fred

    Fred Guest

    Re: Formula for calculating share gross up amount

    Thank you, but No.
    I mean if an employee is supposed to receive 4% of the
    shares of the company and there are say 10,000 shares
    outstanding, a formula to calculate the number of shares
    he/she should get. 400 is the wrong answer. It should be
    closer to 417.
    Is there a formula that calculates that? TY

    >-----Original Message-----
    >Fred wrote...
    >>Is there a formula that will calculate an amount that will
    >>represent a specific percentage of a total after adding

    in the
    >>additional amount, ie after being grossed up?

    >
    >I'm going to guess you mean something along the lines of a

    net sale
    >price P plus x% sales tax = total cost, and you want to

    find the sales
    >tax as a percentage of the total cost, y%. If so,
    >
    >y = x / (1 + x)
    >
    >where x and y have been converted to decimal fractions.
    >
    >
    >---
    >Message posted from http://www.ExcelForum.com/
    >
    >.
    >
     
    Fred, Sep 1, 2004
    #3
  4. Fred

    Govind Guest

    Re: Formula for calculating share gross up amount

    Hi Fred,

    Lets say you have the shares outstanding in cell A1 i.e 10,000.
    and you have % of shares outstanding to be allotted in cell A2 i.e 4.
    (Make sure the number you enter in A2 is just 4 i.e exclude the %)

    Then enter this formula in cell A3

    =(A1/((100-A2)/100))-A1

    This will return a value of 417

    Or if you are entering the % of shares to be allotted in % format i.e if
    you are entering 4% in cell A2 then use this formula in A3

    =(A1/(1-A2))-A1

    This will return a value of 417

    Regards

    Govind


    Fred wrote:

    > Thank you, but No.
    > I mean if an employee is supposed to receive 4% of the
    > shares of the company and there are say 10,000 shares
    > outstanding, a formula to calculate the number of shares
    > he/she should get. 400 is the wrong answer. It should be
    > closer to 417.
    > Is there a formula that calculates that? TY
    >
    >
    >>-----Original Message-----
    >>Fred wrote...
    >>
    >>>Is there a formula that will calculate an amount that will
    >>>represent a specific percentage of a total after adding

    >
    > in the
    >
    >>>additional amount, ie after being grossed up?

    >>
    >>I'm going to guess you mean something along the lines of a

    >
    > net sale
    >
    >>price P plus x% sales tax = total cost, and you want to

    >
    > find the sales
    >
    >>tax as a percentage of the total cost, y%. If so,
    >>
    >>y = x / (1 + x)
    >>
    >>where x and y have been converted to decimal fractions.
    >>
    >>
    >>---
    >>Message posted from http://www.ExcelForum.com/
    >>
    >>.
    >>
     
    Govind, Sep 1, 2004
    #4
  5. Fred

    hgrove Guest

    Fred wrote...
    >I mean if an employee is supposed to receive 4% of the shares
    >of the company and there are say 10,000 shares outstanding, a
    >formula to calculate the number of shares he/she should get.
    >400 is the wrong answer. It should be closer to 417.
    >Is there a formula that calculates that? TY


    4% of 10,000 is 400, whether you want it to be or not.

    You need to be clearer in your language. What you seem to mean is tha
    this employee would be issued *NEW* shares of stock which should equa
    4% of total shares outstanding *AFTER* these new shares had bee
    issued.

    Let N be the total number of shares after issuing new ones.

    (N - 10000) / N = 0.04
    N - 10000 = 0.04 N
    0.96 N = 10000
    N = 10000 / 0.96 = 10417 (rounded up)

    So this employees shares would be

    10000 * 0.04 / (1 - 0.04) = 417 (rounded up

    --
    Message posted from http://www.ExcelForum.com
     
    hgrove, Sep 1, 2004
    #5
  6. Fred

    Guest Guest

    "hgrove >" wrote:

    > Let N be the total number of shares after issuing new ones.
    >
    > (N - 10000) / N = 0.04
    > N - 10000 = 0.04 N
    > 0.96 N = 10000
    > N = 10000 / 0.96 = 10417 (rounded up)
    >
    > So this employees shares would be
    >
    > 10000 * 0.04 / (1 - 0.04) = 417 (rounded up)


    or (very) slightly reduced:

    10000 / (1 / 0.04 - 1)

    Ryan
     
    Guest, Sep 2, 2004
    #6
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