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.

Ask Your Question

Weekly Poll

Do you think Google should sell budget phones in the US?

Discuss in The Lounge

Poll History