Formula
The gross price contains both the net amount and the tax:
Tax = gross × rate / (100 + rate)
A 20% tax inside a $120 price is $20, and the net price is $100.
Assumptions
- The whole price is taxed at one rate.
- The price you type is the amount a buyer pays.
Worked example
A $120 price that includes 20% tax contains $20.00 of tax.
Input definitions
- Price including tax
- The gross amount, tax included.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Why divide by 120 for a 20% tax?
The gross is 120% of the net. The tax is 20/120 of the gross.
What if I need to add tax instead?
Use the tax-exclusive page.