To calculate the Initial Price:
Initial Price=FP1+ST100
Where:
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.
Let's assume the following values:
Using the formula:
Initial Price=1081+8100=1081.08≈100
The Initial Price is $100.00.