You can perform a reverse tax calculation to find the price of some item before tax was added.

You can use the following formula to do so:

**Price Before Tax = Price After Tax / (1 + Tax Rate)**

For example, suppose the price of an item after tax is **$14** and you know the tax rate is **7%**.

You can use the following formula to calculate the price of the item before tax was added:

- Price Before Tax = $14 / (1 +7%)
- Price Before Tax = $14 / 1.07
- Price Before Tax = $13.08

The price of this item before tax was added was **$13.08**.

The following example shows how to use this formula to perform a reverse tax calculation in Excel.

**Example: Reverse Tax Calculation in Excel**

Suppose we have the following list of products in Excel with prices that already have tax added to them:

Suppose we know that the tax rate for each item was 7% and we would like to find the original price of each product before tax was added.

We can specify this tax rate in cell **F1** and then type the following formula into cell **C2** to find the original price of the first product:

=B2/(1+$F$1)

We can then click and drag this formula down to each remaining cell in column C:

Column C now shows the price of each product before the 7% tax was added to it.

For example:

- A $14 product with a 7% tax rate was
**$13.08**before tax was added to it. - A $18 product with a 7% tax rate was
**$16.82**before tax was added to it. - A $20 product with a 7% tax rate was
**$18.69**before tax was added to it.

And so on.

**Additional Resources**

The following tutorials explain how to perform other common tasks in Excel:

How to Find the Top 10% of Values in an Excel Column

How to Calculate Cumulative Percentage in Excel

How to Multiply Column by a Percentage in Excel