Reverse Sales Tax Calculator

Formula

To calculate the Initial Price:

\[ \text{Initial Price} = \frac{\text{FP}}{1 + \frac{\text{ST}}{100}} \]

Where:

$\text{FP}$ is the Final Price in dollars
$\text{ST}$ is the Sales Tax percentage

What is Reverse Sales Tax?

Reverse sales tax is a way to calculate the initial price of an item given the selling price and sales tax. This can be useful for ensuring you are being charged the correct amount at stores and for understanding the total percent of the final price that comes from the sales tax.

Example Calculation

Let's assume the following values:

Final Price ($\text{FP}$) = $108
Sales Tax ($\text{ST}$) = 8%

Using the formula:

\[ \text{Initial Price} = \frac{108}{1 + \frac{8}{100}} = \frac{108}{1.08} \approx 100 \]

The Initial Price is $100.00.