# How to Calculate the HRA on Basic Salary in Excel – 3 Quick Methods

The following dataset contains the salary slip of an employee. B12:C17 showcases the income sources and the total salary for May.

### Method 1 –  HRA Calculation on the Basic Salary in Excel

• Enter the amount of basic salary and HRA for May in C5 and C6.

• In D5 use this formula to multiply C5 by 12 to calculate the annual basic salary.
`=C5*12`

• Using the same formula, multiply C6 by 12 or drag the Fill Handle to D6 to copy the formula.

• Enter this formula in D7 to calculate the actual HRA on basic salary in 1 annual term.
`=D6`

The table showcases the actual HRA on basic salary.

### Method 2 – Calculate HRA with Annual House Rent & Basic Salary

• The formula below is used.
`HRA = Rent - 10% Basic Salary`
• Enter the amount of basic salary and house rent in C5 and C6.

• In D5 multiply C5 by 12 using a simple multiplication formula to calculate the annual amount of basic salary & house rent.
`=C5*12`

• Follow the same method to calculate the annual house rent in D6.
`=C6*12`

• Enter this formula in D7 to calculate the annual HRA with house rent and basic salary.
`=D6-D5*10%`

The table showcases HRA with annual house rent and basic salary.

### Method 3 – Get HRA on 50% of Basic Salary in Excel

• Apply the same multiplication process in D5 to calculate the annual basic salary.

• Enter the formula below in D6 to see HRA based on 50% of your basic salary:
`=D5*50%`

The table below showcases HRA on 50% of the basic salary.

## How to Calculate HRA Exemption in Excel

• Insert the calculated amounts in C5, C6 and C7.

• Enter this formula to find the minimum amount of HRA.
`=MIN(C5:C7)`

This final amount is the HRA on basic salary. It will be deducted from the total amount of tax at the time of tax payment.

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Sanjida Mehrun Guria

Hello! Welcome to my blog. I have completed my Bachelor in Architecture from Ashanullah University of Science & Technology, Dhaka. I am a passionate, goal-oriented person with an immense thirst for knowledge and an attitude to grow continuously. Besides Architectural work, I find it very enthusiastic to work in Excel blogging. Exceldemy is a platform where I have got the opportunity to flourish my skill in Microsoft Excel and therefore, here I will be posting blogs related to... Read Full Bio

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