What does this tool do?
When a price already includes sales tax, dividing by 1 plus the tax rate recovers the net price. The difference is the tax collected.
The Formula
Net price = Total ÷ (1 + Tax rate ÷ 100)Frequently Asked Questions
Why is the tax not simply 8% of the total?
The tax is 8% of the net price, not of the tax-inclusive total. Dividing by 1.08 reverses the addition correctly.
Does this work for VAT?
Yes, the same reverse calculation applies. Use the VAT rate and see the VAT reverse calculator for a dedicated version.