Calculating gross when net is known
 

Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

Answer: Calculating gross when net is known
 

To calculate gross income:

1. Determine the tax rate.
2. Subtract any deductions from the net amount.
3. Divide by the after-tax percentage.

Here's an example:
Let's say your net income is and the tax rate is 20%. You also have a retirement contribution of .
1. Subtract the retirement contribution from the net income: $50,000 - $5,000 = $45,000.
2. Divide by the after-tax percentage: $45,000 / 0.8 = $56,250.

To calculate net income:
Subtract any taxes and deductions from the gross amount.

To adjust your budget:
1. Determine the tax rate and any deductions.
2. Divide the net amount by the after-tax percentage to calculate the gross amount of the adjustment.
3. Subtract the taxes to determine the net amount.

Here's an example:
Let's say you need to adjust your budget by . The tax rate is 25% and there are no other deductions.
1. Divide the net amount by the after-tax percentage: $1,000 / 0.75 = $1,333.33.
2. Subtract the taxes: $1,333.33 * 0.25 = $333.33.
3. Determine the net amount: $1,000 - $333.33 = $666.67.

Calculating gross when net is known
 

Hi,
I am lost here usually you have your gross less your taxes = Your net

assuming gross is in a1, tax in b1(calculated based on 10% taxes) in c1 the
net will be

=a1-b1

Now if you know your net to get your gross will be

=c1/0.90

0.90 comes from 1-0.10 taxes



"placerpone" wrote:

Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

Calculating gross when net is known
 

Well, it depends what your tax rate is. Suppose it is 10% (i.e. 0.1),
then:

Net * 1.10 = Gross

Hence,

Net = Gross / 1.10

or:

Net = Gross / (1 + tax_rate)

Hope this helps.

Pete

On Dec 18, 5:21*pm, placerpone
wrote:
Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

Calculating gross when net is known
 

Net = Gross * (1 - TaxRate)
Net / (1 - TaxRate) = Gross

Regards,
Fred

"placerpone" wrote in message
...
Frequent budget adjustments when the gross amount of the adjustment is
know.
I need to calculate backwards for the tax burden to come up with the net