You can use this as your multiplier
Hello everyone, I imagine this has been queried before but I've not been able to find a clear understandable (to maths dummy me) answer, if someone could help I'd be grateful.
I have to invoice a fee to a Japanese client which includes 20% tax which the Japanese government deducts at source. i.e. 20% will be deducted from the total invoice amount, not the fee I'm to receive.
eg. say my fee is 10,000 yen. If I calculate 20% of that and invoice 12,000 yen the total value of the invoice has increased. The tax office would deduct 20% from 12,000 yen, so I'd only receive 9,600 yen.
So how do I calculate the correct percentage?
Many thanks!
I think pickslides misunderstood your question.
If I understand the question correctly, you want to set your fee so that after 20% is subtracted, you will have $10000.
Let "x" be the amount charged. The 20% of that is 0.20x. After subtracting that you will have left x- 0.20x= (1- .20)x= 0.80x= 10000.
Solve for x by dividing both sides by 0.80: x= 10000/0.80= 12500
You should charge $12500.
Then 20% of 12500= 0.20*12500= 2500 and 12500- 2500= 10000.