GST & Tax Calculator
Net Price:
$100.00
Tax Amount:
$15.00
Total (Gross):
$115.00
This tool allows you to toggle between adding tax to a base price or extracting the tax amount from a total price. It works for any percentage (e.g., 5%, 12%, 18%, or 20%) used globally.
The Math Formulas:
- To Add Tax: $\text{Gross} = \text{Net} \times (1 + \text{Rate}/100)$
- To Remove Tax (Reverse GST): $\text{Net} = \text{Gross} / (1 + \text{Rate}/100)$
FAQ:
- Why can’t I just subtract the percentage to remove tax? If you add 10% to $\$100$, you get $\$110$. But if you subtract 10% from $\$110$, you get $\$99$. To find the original price correctly, you must use the Reverse Tax formula provided in this tool.
- What is GST vs. VAT? They are essentially the same. GST (Goods and Services Tax) is common in India, Australia, and Canada, while VAT (Value Added Tax) is standard in the UK and Europe. Both function as a percentage of the sale.
- What if I have multiple taxes? In some regions (like the US), you may have State and Local taxes. Add those percentages together (e.g., $6\% + 2\% = 8\%$) and enter the total into the “Tax Rate” field.
Practical Fashion Use
- Wholesale Pricing: If a supplier quotes you $\$5,000$ “Plus GST,” use the Add Tax mode to know exactly how much cash you need to pay the invoice.
- Retail Labels: If you want a dress to sell for exactly $\$99.00$ including tax, use the Remove Tax mode to find the “Net Price” you need to enter into your inventory system.
- Expense Reports: If you have a receipt for a business lunch that only shows the total, use this tool to separate the tax for your accounting and tax return records.