Gross Distribution Calculator (Formula)
The Gross Distribution Calculator is a tool designed to determine the total distribution amount before taxes, based on the provided net distribution and tax rate. The formula used for this calculation is:
GD=ND/(1−T)/100
Where:
- represents the gross distribution amount, which is the total amount before tax deductions.
- stands for the net distribution, indicating the amount after tax deductions have been applied.
- represents the tax rate, expressed as a percentage.
The formula derives the gross distribution by dividing the net distribution by 1−T/100. This accounts for the tax percentage and provides the original, untaxed distribution value. This calculation is commonly used in financial contexts where it’s essential to understand pre-tax distributions for accurate planning and reporting.