You can also convert the discounted percentage to a decimal and multiply that by the original price. To calculate a tax, you can convert the percentage to a decimal, then multiply it by the price. If you want to know the total cost, including the tax, you can multiply the original price by one plus the decimal.
What is the formula to calculate tax?
The equation looks like this: Item or service cost x sales tax (in decimal form) = total sales tax. Add the total sales tax to the Item or service cost to get your total cost. Formula: Item or service cost x sales tax (in decimal form) = total sales tax.
How do you calculate a discount?
The formula to calculate the discount rate is: Discount % = (Discount/List Price) × 100.
Do you calculate tax before or after discount?
Discounts are applied before taxes – so any discount that you’ve created will be applied before the Sales Tax you’ve created.