how do i convert the tax amount of 6.875% into a decimal amount to enter for a spreadsheet?

Question

I am trying to figure out how to back out taxes for gross receipt taxes. Yes I am well aware that there are notations/references across the internet. However these notations/references use a whole amount. I would like to know for the very specific amount of 6.875%. And if you have further info on backing out or even entering this info with a subtotal, etc. on a spreadsheet your assistance would be greatly appreciated. For example say the amount with tax = 975.00 how do you figure out the formula. I am thoroughly confused. Thank you kindly.

Answer 1

To express a % as a decimal, just move the decimal point two places to the left. 6.875% becomes .06875. Then just multiply the untaxed amount to get the tax. To revert the tax paid amount to the amount without tax, add 1 and divide, so you'd divide by 1.06875. Therefore the tax paid total of 975.00 = 975.00/1.06875 = 912.28 before tax.

Answer 2

To convert a percent to a decimal, move the decimal point two places to the left. So 6.875% is .06875.

In a spreadsheet, say the base amount is in cell A1. Then the formula for the cell where the tax goes would be =A1*.06875

Answer 3

Divide the sales by 1.06875, that will get you the gross sales, subtract that number from your original number and that will give you the tax.