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How to calculate Advertising Rates and Percentages
25/06/2008 - By Natalie van Veen
If you're like many many people who shudder at the thought of having to calculate percentages and you really hated maths at school and GOD that was sooooo long ago and you can't remember how, then maybe these tips can help.
In advertising we're constantly calculating to make a sale. If you need to figure out for example, how much it will cost you to place a half page advertisement in Farm Weekly (the no.1 magazine for farmers in WA, published by Fairfax Media) then here's how according to their current ad rates:
The size of a half page advert is 13cm x 4 columns
so grab the calculator and multiple 13 x 4 = 52cm
The current ad rate is $11.30
so multiply 11.30 x 52 = $587.60
Now if you need full colour in your half page advert, and the sales exec charges say $150 worth
then add $587.60 + $150 = $737.60
Now last but not least to add the 10% GST
multiply $737.60 x 1.1 = $811.36
So the total price including GST for the half page advert in Farm Weekly is $811.36
NOW here's the cool thing...
Did you see how easy it was to calculate the GST i.e. the 10%?
To calculate an amount plus GST, just multiply the amount x 1.1
To calculate the GST that's already included in an amount, just divide the amount by 1.1
Now what if it's not just Australian GST you need to calculate???
How to calculate PERCENTAGE in general:
Here's a really simple way how:
Divide the given amount by the total amount and then multiply the answer by 100 to get the percentage of the given amount with respect to the total amount.
The equation can be put up as follows: (Given amount/ Total amount) x100
For example if Wally scores 60 out of 75 in maths we can find the percentage of his marks by dividing 60 by 75 which is 0.8, and then multiply it by 100 which gives us the percentage of his marks in math which is 80%:
(60/75) x 100 = 80%
Percentage questions are often worded in different ways like how much is x% of y (80% of 75). Using the above example we can find the answer by multiplying 75 by 80 and then dividing the amount by 100 to find the answer which is 60.
To calculate percentage increase or decrease between two numbers just subtract the smaller number from the greater and then divide the answer by the original one and then multiply it by 100 to determine the percentage increase or decrease. For example to calculate the percentage increase from 20 to 30 we subtract 20 from 30 and then divide the number obtained which is 10 by the original number which is 20 and then multiply the obtained number which is 0.5 by 100 to get the percentage increase which is 50%.
I've worked in corporate city services for awhile and you won't believe how many people struggle with this, so you have a lot of empathy out there!
I hope this helps. I was one of those many people who hated maths with a passion (I sucked at it) but now... if you write down the basic formula and keep it in your wallet or purse you'll always have it handy when you're out shopping!
Cheers, Natalie
