Calculating discounted $ value

Microsoft Excel 2007
October 14, 2009 at 20:47:35
Specs: Windows Vista
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?

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#1
October 14, 2009 at 21:12:29
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 = 105.26315789473684210526315789474

So sell it for $105.27

-Ryan Adams

Free Computer Tips and more:http://RyanTAdams.com
Paid Tech Support: Black Diamond


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#2
October 16, 2009 at 17:58:30
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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