# Reverse Tax Calculation Formula in Excel (Apply with Easy Steps)

Here is a sample dataset to calculate the reverse tax calculation formula. The dataset comprises product names, MRP and Tax rates in cells B4:D9.

### Step 1 – Tax Amount Calculation

Calculate the tax amount of each product with this formula:

`=(MRP*Tax Rate)/(1+Tax Rate)`
• Insert the Tax Amount formula in cell E5 according to the dataset:
`=(C5*D5)/(1+D5)`

• Press Enter.

• Calculate the tax amount of other products as well. You can insert the formula in cells E6:E9 or just drag the bottom right corner of cell E5 up to cell E9.

### Step 2 – Calculation of Actual Prices

Let’s calculate the actual price of each product with this formula:

`=MRP-((MRP*Tax Rate)/(1+Tax Rate))`
• Insert this formula in cell F5.
`=C5-((C5/(1+D5)*D5))`

• Press Enter.

• Insert the same formula in cells F6:F9 or just drag the bottom corner of cell F6 up to cell F9.

Another formula can be used to calculate the actual price which states below:

`=MRP/(1+Tax rate)`
• You can insert this formula in cell F5, for example.
`=C5/(1+D5)`

Practice Workbook

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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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