Reverse Sales Tax Calculator

To calculate the initial price before tax, divide the final price (FP) by the sales tax rate (ST) and multiply by 100.

Reverse Sales Tax Calculator

Initial Price ($) Sales Tax (%) Final Price ($)

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The Reverse Sales Tax Calculator can calculate the price of an item before tax, given the final price including tax. In other words, it helps you figure out how much of the price is tax and how much is the original amount.

For example, if you have a final price that includes tax, this calculator helps to reverse the sales tax to find the base price. Moreover, this calculation is useful for budgeting, pricing analysis, and financial planning.

Formula

$$InitialPrice = \frac{FP}{ST} \times 100$$

Variable	Description
InitialPrice	Price before sales tax
FP	Final price (price after tax)
ST	Sales tax rate (in percentage)

Solved Calculations

Example 1:
For instance, if the final price (FP) is $120 and the sales tax rate (ST) is 10%, the initial price is calculated as:

Step	Calculation
Final Price (FP)	$120
Sales Tax Rate (ST)	10%
Initial Price	$\frac{120}{10} \times 100$
Result	$109.09

Answer: The initial price before tax is $109.09.

Example 2:
Similarly, if the final price is $150 and the sales tax rate is 15%, the initial price would be:

Step	Calculation
Final Price (FP)	$150
Sales Tax Rate (ST)	15%
Initial Price	$\frac{150}{15} \times 100$
Result	$130.43

Answer: The initial price before tax is $130.43.

What is a Reverse Sales Tax Calculator?

The Reverse Sales Tax Calculator is a practical tool. It is used to calculate the original price of an item before tax was added. Often, when the total price including sales tax is known, it can be difficult to figure out the base price. This calculator solves that problem by allowing you to input the total price and the sales tax rate, and it will compute the price before the tax was applied.

To use the Reverse Sales Tax Calculator, simply enter the total price (including tax) and the sales tax rate. The calculator then uses the reverse sales tax formula to determine the amount before tax, helping you break down the total cost into its pre-tax component.

This tool is especially useful for businesses, accountants, and individuals looking to calculate the base price of items in regions with varying sales tax rates.

Final Words:

To summarize, the Reverse Sales Tax Calculator is an essential tool for quickly and accurately determining the pre-tax price of goods and services, simplifying tax-related calculations for both personal and professional use.