What is an excel formula I can use to calculate the amount of a number based on two percentages...?

Question

Like, for example, say I have the number 60,000. I want to be able to find the answer when the first 40,000 of that is calculate with 10% and the remaining 20% is calculated with 15%. I have a lot of numbers I have to do this to.

Any help? I don't know if I explained it well enough. I don't know a ton about excel.

Answer 1

The easiest way to do it is to say that everything is taxed at 10% and any excess over 40000 is taxed at an extra 5%.

So you need the formula (60,000 is in A1)

=0.1*A1+ .05*(A1-40000)*(A1>40000)

The logic statement A1>40000 gives 1 if it is and zero if it isn't. An "if" calculation would do the same but this is a little nicer.