formula to calculate sales tax from total sales

[Deanna]

My husband and I just opened a business and I have created a chart on excel
for us to track daily sales but also to figure sales tax so we know what to
send the IRS each month. We have been figuring the sales tax ourselves and
filling in the chart on excel but I would like to create a formula that
automatically does it for me based on total sales.

 

[Paul B]

Deanna, would total sale times sale tax rate work?

--
Paul B
Always backup your data before trying something new
Please post any response to the newsgroups so others can benefit from it
Feedback on answers is always appreciated!
Using Excel 2002 & 2003

 

[dak818]

Hi Paul, I am afraid I don't understand. I want to take cash and credit
card sales and be able to figure out what we owe the Dept. of Revenue each
month. It is not a problem for us to tabulate this figure for ourselves; I
just figured that with excel there would be some formula I could put in for
it to do it automatically. Our tax rate is 7%. Thanks for any information
you may offer.

 

[Paul B]

Deanna, maybe I am missing something here, but with you total in A1 this
will give you 7% of that =A1*0.07, is this what you need?

--
Paul B
Always backup your data before trying something new
Please post any response to the newsgroups so others can benefit from it
Feedback on answers is always appreciated!
Using Excel 2002 & 2003

 

[dak818]

Thank you Paul!!!!! That did it! Simple as it was; I could not discover
this on my own! Thanks a bunch!

 

[Paul B]

Your welcome

--
Paul B
Always backup your data before trying something new
Please post any response to the newsgroups so others can benefit from it
Feedback on answers is always appreciated!
Using Excel 2002 & 2003

 

[Evan]

This is wrong. The number you are looking for is A1-(A1/1.07) NOT A1*7

 

[Harlan Grove]

Evan wrote...

This is wrong. The number you are looking for is A1-(A1/1.07) NOT A1*7

....

You mean 'NOT A1*7%'.

You're probably correct. If the OP's total receipts already include 7%
sales tax, then the total receipts equal sales revenue plus sales tax,
and sales tax would be 7% of sales revenue rather than total receipts.
7% of total receipts is higher than 7% of sales revenue, so A1*0.07
would overstate sales tax. This is perhaps a bit clearer to see by
rewriting the correct formula as A1*0.07/1.07.