How to Calculate Gross Based on Net

How to Calculate Gross Based on Net
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In economics, the term "gross" refers to the total amount of profit or income a person or business makes before taxes and deductions are figured into the equation. The term "net" refers to the amount of profit or income after taxes and deductions have been subtracted from the gross total. You can use net to calculate gross if you are given the relationship between the two figures in terms of percentages.

Write down the net income. For example, you might have a net income of $35,000 per year.

Convert the percentage relationship between the net and the gross figures to a decimal. For example, suppose that the net income in this instance equals 70 percent of the gross total. In order to convert a percentage to a decimal, divide by 100. If you divide 70 by 100, you get 0.70.

Multiply the percentage in decimal form times the net figure. In this example you would multiply 0.70 times 35,000 to get 24,500.

Add your answer from step three to the net income to find the gross figure. In this example, add 24,500 to 35,000 to get a gross income of $59,500.