How do I increase a budget amount based on a 40% redemption

[vtrud]

I'm working on a spreadsheet that I need to give an additional amount showing
an increase in the budget amount based on a 40% redemption of the budget. On
this spreadsheet in a previous year someone figured this using a calculator
and entered it manually in the spreadsheet rather than using a formula. I
don't know how to figure it manually much less use a formula. I've been
trying to come up with it based on what they had but can't. They had a
budget of 50,000 and and came up with an increase amount of 62,500. I don't
know how they came up with that.

 

[John C]

What does 40% redemption in the budget actually mean?

 

[Bob I]

Looks like a straight 25% increase to me. Where does this "40%
redemption of budget deal" come into it? 40% of what?

 

[Bernard Liengme]

If A1 has the value 50,000 then the formula =A1(1+40%) will return a value
of 50,000 + 40% of 50,000 which is 70000
In your example (50,000 -> 62,500) there was a 25% increase: (62500 -
50000)/50000 give 0.25 or 25%. A percentage is just a ratio multiplied by
100.

Without wishing to sound rude, you really need to brush up on your math if
you are going to use a mathematical computer application otherwise how will
you know you are doing the right thing?

best wishes

 

[vtrud]

This budget is for a certificate that can be redeemed. It is sent out to
many people and the first year it was in effect, 40% of what was sent out was
redeemed. So, the second year they planned to send out additional above the
budget based on that 40% redemption. I thought this was pretty basic,
however, I can't see how they got the 62,500. It doesn't make sense given
the fact they said they were figuring on 40% redemption.

 

[John C]

I guess my question is what does 40% redeem mean? 40% of the budget wasn't
spent? or 40% of the budget was recouped by other funding? Because as others
posted, $62,500 is a 25% increase over the previous budget.

Or, more likely, since you cannot figure out how they came up with that
value, it is entirely possible the $62,500 was calculated wrong.

 

[vtrud]

40% of the budget was used when the certificates sent back in. They are a
certificate to be sent back in for a cash rebate, so to speak.

I was coming up with 25% as well and I do admit I am not a math wiz but I
can usually figure things out eventually. However, since this was done by
someone who is pretty good at this stuff, I figured I was missing something...

I'm assuming it was done wrong.

Thanks.

 

[vtrud]

Okay, I think I have it straight in my head now. This is what I want to come
up with: If 50,000 is the budget... I want to come up with a figure so that
40% of that new figure is 50,000. Does that make sense?

 

[John C]

Are there perhaps other parameters that you have not brought up yet that may
have also determined the new budgetary figure?
I only ask because I know that, especially in government, if you do not
spend an allotted budget amount, that the next budget is decreased
accordingly. For example, in very simple terms, say you have a budget of
$50,000, and the percent increase from 1 year to the next for the normal
budgetary purposes is 5%. But then say in that first year you only spent
$40,000 (or 80%). What happens sometimes is the budget is essentially re-set
to what was spent a previous year, and THEN the budget increase percentage is
applied. $40,000 + 5% of $40,000 would be a new budget of $42,000.

In answer to your last question below, I don't think that the figure you
want, when calculating 40% of it, is equal to the $50,000. If you did, well,
40% of 125,000 is $50,000, and I have a feeling that is off.

I think you might be looking for this.
newbudget = oldbudget + (oldbudget*40%)

 

[vtrud]

I know how to figure that. I guess I just didn't explain it right.

Looking through this further and talking with someone here... this is what I
would like a formula for:

Budget is 50,000... 1/2 goes to one area of the project and 1/2 goes to
another.
Basically it is 50,000 / 2 * 60% for a total. I don't want the additional
amount to add, I want the total.

 

[John C]

I have to say something. If you read the original post, the OP clearly stated
what information he was given. Original budget of $50,000. 40% Budget
redemption. The person who had done the calculation previously, given that
data, had come up with $62,500. If you read a later post by the OP, you will
find that he too was coming up with an increase of only 25% instead of 40%.
He perhaps is looking in the wrong area for budgetary calculation help, but
as far as excel is concerned, his question was appropriate. He knew that the
$62,500 was incorrect, or at least that was not the info he was coming up
with. So perhaps you and Bernard, next time at least, will, instead of
badgering the OP with questions about not knowing math or "not meaning to be
rude", keep your comments to yourself, or, better yet, read the entire
original post and realize that the OP had the question because he was coming
up with the same solutions we were, and it wasn't matching up with a previous
person's data (who had calculated, obviously incorrectly, manually).

 

[vtrud]

Thank you John. I thought I was coming here for help not to be made to feel
stupid.

I may not use this anymore.

 

[John C]

No, honestly, don't feel that way. Most of the responders on here are really
good, and very helpful. And treat this as an exception for both David and
Bernard, as they are both very good with excel as well.

 

[John C]

What is the 60% from? If your formula is just that, it would be
Assuming A1=50000 and A2=60%
A3: =A1/2*A2

 

[vtrud]

I think I had that wrong. Half of the budget should be 40% of the new total.
So using the figures I gave earlier...40% of 62,500 is 25,000 which is half
of 50,000.

Do you have a formula for that... to get that 62,500 number when all you
have is the starting budge amount?

 

[John C]

A1=original budget, A2=40%
A3: =A1/2/A2

 

[vtrud]

Thank you!

A1=original budget, A2=40%
A3: =A1/2/A2

 

[John C]

You are welcome, and thanks for the feedback.