Add tax to a price or take it out of a price that already includes tax. Enter the amount and the tax rate. You get the price before tax, the tax amount and the total.
Works for any percentage based sales tax, such as GST, VAT or sales tax. Use the rate that applies to your product and country.
Formulas and assumptions
- Add tax: tax = amount times rate divided by 100, total = amount plus tax
- Remove tax: price before tax = total divided by (1 + rate divided by 100)
- Tax amount: total minus price before tax
Example
At 18 percent, a price of 10,000 carries 1,800 of tax, so the total is 11,800. Going back, 11,800 divided by 1.18 gives 10,000 before tax.
Frequently asked questions
How do I calculate GST or VAT on a price?
Multiply the price by the rate and divide by 100 to get the tax, then add it to the price.
How do I remove GST from a total?
Divide the total by 1 plus the rate as a decimal. For 18 percent, divide by 1.18. Do not just subtract 18 percent from the total.
Is VAT the same as GST?
Both are taxes added at each step of the supply chain. The names and rates differ by country, but the calculation is the same.
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