How do I calculate Amount of Sales Tax from Total Amount?

[Guest]

I need to create an Excel Formula that calculates how much tax was paid
within a total amount. example: Total Amount = $546.20. Tax base = 8.8%.
How much of the $546.20 is tax?

 

[Bob Phillips]

Mike,

In principle, you multiply by the tax rate, and divide by 1 (Or 100%) plus
the tax rate. So here bit would be

=A1*.088/(1+.088)
or
=A1*8.8%/(100%+8.8%)

You might want to round it to 2 dec places as it is currency

=ROUND(A1*8.8%/(100%+8.8%),2)

--

HTH

RP
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