Microsoft Excel 2007

If I know that 5% of whatever I charge for a product is taken from the bottom line, then how do I do the calculation to tell me how much I should list the product for to ensure I recieve the original amount I wanted. e.g. product value is $100, I know that 5% will be taken, so I put 5% on , price is now $105, but when the 5% is now taken the price becomes $99.75. How do I do the calculation to tell me how much I should list it for to ensure I recieve $100 after the 5% is taken?

S is the original price (in your case $100)

D is deduction (in your case 5% or $5)

L is list price (what you are looking for)L - (D * L) = S

Solve for L:

L - (D * L) = S

L * (1 - D) = S

L = S / (1 - D)There you go. Plugging in the original numbers you gave, we get:

L = 100 / (1 - .05)

L = 100 / 0.95

L = 105.26315789473684210526315789474So sell it for $105.27

-Ryan Adams

Free Computer Tips and more:http://RyanTAdams.com

Paid Tech Support: Black Diamond

Ryan is correct except in the case of a tax rate (ex. sales tax)

where you would have to round down.

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