The formula
How it works
Sales tax (or VAT) is a percentage added on top of a price at the till. Enter a pre-tax price to add tax, or a final price to work backwards and strip the tax out — handy for receipts that only show the total.
FAQ
Switch to “Price with tax” and enter the total. The calculator divides it by 1 plus the rate to recover the pre-tax price.
The maths is identical — a percentage of the price. VAT is just the name used in the UK, EU and many other countries.
About the sales tax calculator
This calculator adds sales tax to a price, or works backwards to remove it from a total. Sales tax is a percentage charged on top of the marked price of goods and services, collected by the seller and passed on to the government. Because rates differ by country, state and even city, a quick calculator saves you from guessing what a final bill will be — or what a receipt was before tax.
How to use it
First choose what you already know. If you have the price before tax, keep “Price before tax” selected, type the amount and the tax rate, and the calculator shows the tax and the final total. For example, a $100 item at a 7.5% rate has $7.50 of tax and costs $107.50. If instead you only have the final price, switch to “Price with tax”: entering $107.50 at 7.5% recovers the $100 net price and the $7.50 of tax. Change the currency if you are shopping abroad.
The formula
Adding tax uses , where is the price before tax and is the rate as a percentage; the total is . To go the other way and remove tax from a gross total , divide instead: the net price is , and the tax is whatever is left over. This reverse step is why you cannot simply subtract the percentage from the total — the percentage was taken of the smaller pre-tax figure, not the total.
Where it is used
Shoppers use it to check receipts and budget for the real cost of a purchase, while small businesses use it to set shelf prices and file tax returns. It is equally useful for freelancers adding VAT to an invoice, travellers comparing prices between regions, and students learning how percentages work on top of a base amount. The reverse mode is especially handy at tax time, when you need the net figure from a total that already includes tax.