Enter the principal amount and tax rate into the calculator to determine the tax commission. This calculator can also evaluate any of the variables given the others are known.
Tax Commission Formula
The following formula is used to calculate the tax commission.
TC = P * r
Variables:
- TC is the tax commission ($)
- P is the principal amount ($)
- r is the tax rate (decimal)
To calculate the tax commission, multiply the principal amount by the tax rate. The result is the tax commission.
How to Calculate Tax Commission?
The following steps outline how to calculate the Tax Commission using the formula TC = P * r.
- First, determine the principal amount ($).
- Next, determine the tax rate (decimal).
- Next, gather the formula from above = TC = P * r.
- Finally, calculate the Tax Commission.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
principal amount ($) = 500
tax rate (decimal) = 0.15
