Profit Gross up Formula

Profit Gross up Formula

Profit can be grossed up by the following formula. This concept is widely used in taxation, where profit is grossed up for the purpose of taxation.

Amount to be grossed up/ (1-Gross up Rate)

Example

Profit = 150

Rate of Grossing up= 30%

Calculate Gross up profit

Solution

Amount to be grossed up/ (1-Gross up Rate)

= 150/ (1-.3)

= 150/.7

= 214.28