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

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.

**Excel:** `=B2*$F$1/(1+$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 |
| --- | --- | --- | --- | --- | --- |
| Receipt | Total incl. tax | Tax included |  | Tax rate | 0.1 |
| Groceries | 110 |  |  |  |  |
| Café | 55 |  |  |  |  |
| Phone | 2499 |  |  |  |  |
| Books | 19.95 |  |  |  |  |
| Furniture | 880 |  |  |  |  |

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

Result: $10.00; $5.00; $227.18; $1.81; $80.00

## 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.

## Other ways

- `=B2-B2/(1+$F$1)`: The total minus the price before tax. Same result.
- `=B2*$F$1`: Takes 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%.

## 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.

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/tax-amount-from-a-total-including-tax