Sales Tax Calculator
A sales tax calculator is a tool or application designed to assist individuals and businesses in determining the total cost of a purchase
Result
Net Amount | ||
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Tax Rate | ||
Gross Amount |
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A sales tax calculator is a tool or application designed to assist individuals and businesses in determining the total cost of a purchase, including applicable sales taxes. Sales tax is a consumption tax imposed by governments on the sale of goods and services, and its rate can vary based on the location and type of items being purchased.
The sales tax calculator typically takes two main inputs:
1. Pre-tax Amount: The cost of the goods or services before any sales tax is applied.
2. Sales Tax Rate: The percentage rate of the sales tax in the relevant jurisdiction.
The calculator then applies the sales tax rate to the pre-tax amount to calculate the total cost, which includes both the original price and the sales tax. The formula for calculating the total cost is:
{Total Cost} = {Pre-tax Amount} + ({Pre-tax Amount} x {Sales Tax Rate})]
Sales tax calculators are essential for both consumers and businesses to understand the final amount they will need to pay for a purchase, especially in regions where sales tax rates may vary. Online tools and mobile apps often provide convenient ways to input values and instantly determine the total cost with sales tax included.