Taxes
GST amount
The tax is the base price multiplied by the rate.
The Formula
GST = base x rate
The tax is the base price multiplied by the rate.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| B | Base price | currency | Price before GST. |
| r | GST rate | rate | Rate as a decimal. |
What Each Symbol Means
Bcurrency
Base price
Price before GST.
rrate
GST rate
Rate as a decimal.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate gst page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate GST, filed under Finance. Every number the guide produces comes from substituting into this one line.