Tax
Remove tax from a gross price
Divide the gross price by one plus the rate to recover the pre-tax amount.
The Formula
Net = gross / (1 + rate)
Divide the gross price by one plus the rate to recover the pre-tax amount.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| G | Gross price | currency | Price including tax. |
| r | Tax rate | rate | Rate as a decimal. |
What Each Symbol Means
Gcurrency
Gross price
Price including tax.
rrate
Tax 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 sales tax 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 Sales Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.