Equation for amount minus the percentage.

[PCLIVE]

I know this is more math than Excel, but I thought someone may know the
equation. Once I know the equation, I can do the formula with no problem.

In a PayPal type example, let's say I charge someone $100 for a service and
PayPal charges a 2.9% transaction fee.
That's a total of $102.90.

So how can I determine how much more to charge someone so that after the
percentage fee has been subtracted, I will end up with the desired amount of
$100?

If I charge $102.90, then the transaction fee is now $2.98 and the the
difference is $99.92 (but I need it to be $100, for this example)

Does anyone know of an equation that will determine this regardless of the
initial charge amount?

Thanks.
Paul

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[PCLIVE]

For 2.9%, this seems to work, but I'm not sure if there are any limitations.

=100+(100*2.987%)

This equates to $102.99 of which 2.9% of that is $2.99. When subtracted,
that gives me the desired amount of $100.
Is there a way to figure this out regardless of the percentage fee.

Thanks,
Paul

 

[Bernard Liengme]

David has given you the exact answer.
But if you cannot do that math, let Solver do it
In A1 enter text "Price", in B1 "PayPal", in C1 "I get"
In A2 enter any number (say 100),
in B2 enter =ROUND(2.9%*A2,2)
in C2 enter =A2-B2
Now have Solver (or Goal Seek) make C2 equal 100 by varying A2.
I get 102.99 (same as David's rounded value)

best wishes

 

[PCLIVE]

Thanks David,

Your reply wasn't there when I replied to myself. The reason replied to
myself is because I had stumbled across an equation that appeared to be
working. I didn't want to double post.

I like your solution. I can't believe how simple it was. That's a lot
simpler than my:

=A1+(A1*2.9866117404737%)

Thanks again,
Paul

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You seem to be replying to yourself, rather than to anyone else, but you
may not have read my reply where I said =A1/(1-2.9%)

If you want to replace 2.9% by a percentage in A2 the formula becomes
=A1/(1-A2)

 

[PCLIVE]

David,

You're formula was great. Now for one additional value that I mistakenly
ommitted.
In direct relation to PayPal, there is a $0.30 transaction fee. Is there a
way to fit this into the formula? At first I thought:
=A1/(1-2.9%)+.30

However, that result is off by one cent. I already know how to do it in
Goal Seek, but I was wondering if this can be equated within the formula.

My specific example uses $10.00
Transaction fee is $0.30

The total needed up front is $10.61. Can I somehow figure in the
transaction fee?

Thanks,
Paul



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You seem to be replying to yourself, rather than to anyone else, but you
may not have read my reply where I said =A1/(1-2.9%)

If you want to replace 2.9% by a percentage in A2 the formula becomes
=A1/(1-A2)

 

[David Biddulph]

Well you haven't made it clear at what stage you deduct the transaction fee,
and at what stage you now calculate the other percentage fee, but to get
that answer you may want something like
=(A1+0.3)/(1-2.9%)

In that case, if you start from your original selling price, and first
deduct the 2.9% that would leave$10.30, and then you could knock off the 30
cents to leave you with $10.00.

 

[PCLIVE]

That's it:
=(A1+0.3)/(1-2.9%)

I had actually tried that but I forgot about the fact that the order of
operators would not first add .3 to A1 without the parenthesis. I put them
there and it works.

Thanks again for the help.
Paul

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