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Add next step in your pricing workflow by sending the net price determined above to a calculator below
Contents
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User Guide
This tool will calculate the net selling price and tax amount from the gross selling price and required sales tax, value added tax (VAT) or goods & services tax (GST) percentage rate.
Formula
The formula used by this calculator to determine the gross selling price and amount of tax is:
GP = NP · 100 / (100 + TR)
TA = GP – NP
Symbols
- NP = Net price
- GP = Gross price
- TR = Tax rate (%)
- TA = Tax amount
Gross Price
This is the price after tax has been added. It represents the price a buyer will pay, although a registered business will be able to claim back the tax, and therefore it does not count towards the total cost to the business. For an unregistered business or end consumer it would count towards their total cost, since they would not be able to claim back the tax.
Tax Rate %
This is the percentage rate of tax, which is typically set by a government and applied by all businesses which are tax registered. The tax rate is applied and the resulting tax amount added to the net price to determine the gross price.
Net Price
This is the selling price before tax has been added. For a tax registered business, the net selling price is what is used to count towards the sales revenue of the business.
Tax Amount
This the value of the tax, determined at the government specified rate, that must be collected from the buyer in addition to the net selling price.