Reversing a percentage increase

  • Thread starter Thread starter Roger
  • Start date Start date
R

Roger

I was calculating the total price of a home I could afford based on a
mortgage payment and then I got curious what the value would be if I added a
6% down payment into the mix so that it would return me to my original price.

For example:
If the value is $250,000 and I increase it by 6% the value goes up to
$265,000. But if I subtract 6% from $265,000 I end up with $249,100. How can
I properly calculate the increase so that it will return me to my original
amount of $250,000?
 
Hi Roger,
If your 265,000 is in cell C1 and your 6 is in cell B1 the the original value
is returned by C1/(1+B1%)

HTH
Graham
 
Graham has told you HOW.
Here is the WHY.
You increased 250k by 6% to get 265k
To revert, you must decrease 265k by the SAME amount, that is by 6% of 250k
(not 6% of 265k)
best wishes
 
Thank you. What you and Graham wrote works and makes sense, but I'm actually
trying to get the inverse result. So let me pose the question a different
way. How can I increase $250,000 so that the result is $265,957.50 which
would allow me to subtract 6% and return to $250,000. (Or something that is
fairly close even if it's not accurate to the decimal.) Or stated
differently, how could I determine that I actually wanted to add 6.383%
percent to $250,000 to get the answer I was looking for.

I figured it out by trial and error, and not so much with an equation that
would allow me to plug in ANY percentage to get similar results.
 
Yeah. That works.

David Biddulph said:
Well, seeing that the way you want to get from 265,957.50 or therabouts to
250,000 is to multiply by (1-6%), did you think that the way to get from
250,000 to 265,957.50 or thereabouts is to *divide* by (1-6%) ?
 

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