Gross Distribution Calculator

Formula

To calculate the Gross Distribution (GD):

\[ GD = \frac{ND}{1 - T} \]

Where:

$GD$ is the Gross Distribution in dollars
$ND$ is the Net Distribution in dollars
$T$ is the Tax Rate (as a decimal)

What is Gross Distribution?

A gross distribution is defined as the total value of distribution before taxes have been paid. All gross distributions are subject to tax, and the tax paid depends on several factors including the total amount and the length of time the distribution has been held.

Example Calculation 1

Let's assume the following values:

Net Distribution ($ND$) = $10,000
Tax Rate ($T$) = 20%

Using the formula:

\[ GD = \frac{10000}{1 - 0.20} = \frac{10000}{0.80} = 12500 \text{ dollars} \]

The Gross Distribution is $12,500.

Example Calculation 2

Let's assume the following values:

Net Distribution ($ND$) = $15,000
Tax Rate ($T$) = 25%

Using the formula:

\[ GD = \frac{15000}{1 - 0.25} = \frac{15000}{0.75} = 20000 \text{ dollars} \]

The Gross Distribution is $20,000.