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Calculate EX-GST price

Calculate EX-GST price

It is very easy to calculate the GST, VAT, TAX on original price, in order to do that we need to multiple the original price by the TAX percentage, like bellow:

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Original price is:100
GST is: 10%
 
Final price is: original price + original price * Tax
110 = 100 + 100 * 10%
 
Or simpler:
110 = 100 * 1.1
 
1.1 is calculated by  100% + 10%
 
 

To calculate the original price from final price, we need to do the reverse calculation.

Easiest way is to divide the final price by the tax price like below:

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Original price = final price / tax percentage
 
100 = 110 / 1.1
 
1.1 is calculated by 100% + 10%
 
 

For reverse calculating 25%, we only need to change 1.1 with 1.25

Tagged under: calculation, trick
Nick
Saturday, 01 February 2020 / Published in General

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