Spreadsheet Practice

How to calculate the tax included in a total price in Excel

Formula (Excel and Google Sheets)

=B2*$F$1/(1+$F$1)

Multiply the total by the rate over 1 plus the rate: =B2*$F$1/(1+$F$1). With 10% tax, a 110 total includes 10 of tax.

Result on the example
one result per row in C2, filled down to C6
Works in
Every current version
Google Sheets
Same formula

See it work

The formula is already in C2, filled down to C6. Change any input and the result updates, or edit the formula to experiment.

How it works

A tax-inclusive total is the net amount × (1 + rate), and the tax is net × rate. So the tax is the share rate/(1+rate) of the total: 0.1/1.1, one eleventh for a 10% tax. 110 contains 10 of tax.

=B2*$F$1/(1+$F$1)

Result10

  1. B2$110.00

    The value in B2.

  2. $F$110%

    The value in F1.

  3. B2*$F$111

    The * operator multiplies.

  4. 1+$F$11.1

    The + operator adds.

  5. B2*$F$1/(1+$F$110

    The / operator divides.

In Google Sheets

The same formula works in Google Sheets: =B2*$F$1/(1+$F$1). We ran it in Google Sheets mode on the same data and it returns the same results.

Other ways to do it

Each one was run on the same example sheet.

FormulaResultWhen to use it
=B2-B2/(1+$F$1)$10.00, $5.00, $227.18…The total minus the price before tax. Same result.
=B2*$F$1$11.00, $5.50, $249.90…Different resultTakes 10% of the total, the usual mistake. Gives 11 for a 110 total instead of 10.

Common mistakes

  • Multiplying the total by the rate overstates the tax, because the rate applies to the price before tax.
  • For 20% VAT the included share is 1/6 (0.2/1.2), not 20%.

Try it yourself

Same data, empty answer cell. Your formula is graded instantly, then re-checked on changed data, so a typed-in number won't pass.

Calculate the tax included in a total price

In C2, work out how much tax is included in the total, using the rate in F1, then fill down to C6.

Questions

How do I get the price before tax?

Divide: =B2/(1+$F$1).

What fraction of the price is GST at 15%?

=0.15/1.15, about 13.04%, or 3/23.

Checked by running on 2026-10-30: every formula and result on this page was calculated by the Spreadsheet Practice formula engine, in both Excel and Google Sheets modes.