MS Excel Examples: Net Price

Introduction

This small example shows how to perform a simple operation of calculating the amount of tax retrieved from a sale item and the net price sold.

The marked price, the price presented on an item, is in currency value. It this example, it would be $120.95

The tax rate is expressed as a percentage value. An example would be 5.75%

The computer used to evaluate the price use a formula such as:

Tax Amount = Marked Price / Tax Rate

The net price, the actual price a customer should pay, is calculated as:

Net Price = Marked Price + Tax Amount

In this exercise, we will simulate such a calculation

Practical Learning: Performing the Calculation

  1. Start Microsoft Excel
  2. In cell B2, type Net Price Calculation
  3. In cell B3, type Marked Price:
  4. In cell B4, type Tax Rate:
  5. In cell B5, type Tax Amount:
  6. In cell B6, type Net Price:
  7. In cell D3, type 0.00
  8. In cell D4, type 5.75%
  9. In cell D5, type =D3*D4
  10. In cell D6, type =D3+D5
  11. To test the application, change the value of cell D3 and press Enter
 

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