# How to gross up an amount for tax in Excel

Divide the net amount by 1 minus the tax rate: `=B2/(1-$F$1)`. To pay someone 1,000 after 22% tax, the gross is 1,282.05.

**Excel:** `=B2/(1-$F$1)` (Every current version)

**Google Sheets:** the same formula works.

## Example

Sample data (row 1 is the header):

| A | B | C | D | E | F |
| --- | --- | --- | --- | --- | --- |
| Payment | Net wanted | Gross |  | Tax rate | 0.22 |
| Bonus A | 1000 |  |  |  |  |
| Bonus B | 2500 |  |  |  |  |
| Gift card | 750 |  |  |  |  |
| Relocation | 5000 |  |  |  |  |
| Award | 300 |  |  |  |  |

Formula in C2, filled to C6: `=B2/(1-$F$1)`

Result: $1,282.05; $3,205.13; $961.54; $6,410.26; $384.62

## How it works

Withholding 22% leaves 78% of the gross, so net = gross × 0.78. Dividing the net by `1-$F$1` reverses it: 1,000 / 0.78 = 1,282.05, and 22% of that is 282.05, leaving exactly 1,000.

## Other ways

- `=ROUND(B2/(1-$F$1),2)`: Rounds to cents, as payroll does. (Stores the amounts rounded to the cent instead of the exact fractions.)
- `=B2*(1+$F$1)`: Adding 22% on top is the common mistake. (Too low: 1,220 leaves only 951.60 after tax.)

## Common mistakes

- Adding the tax rate to the net underpays, because the tax is taken from the larger gross amount.
- Combine every withholding that applies (for example federal, state and payroll taxes) into one rate before grossing up.

## Questions

**How do I check the result?**

Take the tax off again: `=C2*(1-$F$1)` should return the net amount.

**How is this different from adding VAT?**

VAT is added on top of a net price (multiply by 1 + rate); withholding is taken out of a gross amount (divide by 1 - rate).

Every formula and result on this page was checked by running it in the Spreadsheet Practice formula engine on 2026-10-30.

Source: https://spreadsheetpractice.com/formulas/gross-up-an-amount-for-tax