Sales tax calculator

A lot of people do not know about sales tax and how it is calculated. The amount of sales tax is charged on products we use particularly daily consumables. Consider that you visit a mart to buy a packet of rice. On viewing the price breakdown of the product, you would see the sales tax being shown as an individual entity. The product price would be calculated after including it. This tax amount is paid by the buyer. How is sales tax calculated? Here is an example to get more understanding of this point.

Example: Sales tax calculation

Consider that you need to buy a coffee bottle and the sales tax percentage is 12%. Let us suppose that the cost price of the coffee bottle is 120. Thus, the total payable price would be given as follows.

\(\text{Total payable price = cost price + sales tax}\)

Total payable price \(= 120 + \left(\dfrac{12}{100}\right) \times 120\)

Total Payable Price \(= 120 +14.4\)

Total Payable Price \(= 134.4\)

How to Calculate Sales Tax

What is the best way to use an online calculator? You need to start by understanding the input entering process. To use the sales tax calculator, you have to go through the following steps.

1. Enter the values of sales tax and net price
   The user has to enter two inputs to determine the sales tax. These include the tax percentage and net price.  Consider that you have a tax percentage of \(18\%\) and the net price is \(\$1000\). Once you have entered both these inputs, click the calculate button to check the results.
2. Viewing the produced results
   When you have entered the values of tax percentage and net price, click the “calculate” button to view the results. If you consider the values written above, the following outputs would be shown to you.
   Gross Price \(= 1180\)
   Tax Amount \(= 180\)