Calculate the original price of an item given the sales tax% and the final price. Evaluate the total sales tax given the starting price and final price.
Reverse Sales Tax Formula
The following formula can be used to calculate the original price of an item given the sales tax % and the final price of the item.
Initial Price=Final Price/Sales Tax/100
This can be useful for making sure you are being charge the correct amount out at stores, and for understand the total percent of the final price that is coming from the sales tax.
Lets go over an example of how to properly use this calculator.
First, you must determine the sales tax % in your state. You can either use google, or look at your receipt to figure this out. The only exception to this is Delaware, which has no sales tax.
Let’ assume the sales tax for this problem is 13%. Quite higher than normal, but it’s just an example.
Now we need to determine the final price of the item. This should be the final number on your receipt if it’s the only item you purchases. If you purchase multiple item, you will need to subtract the others.
Let’s assume the total item was $100.00 to make this problem simple.
Now plug the numbers into the calculator above, and you have your initial price.
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