Discount And Tax Calculator

Work out discount and tax instantly with clear inputs, formula shown and shareable results.

About Discount And Tax Calculator

Discount then tax is the normal order: the discount reduces the taxable amount, so a 25% discount on a 250 item cuts both the price and the VAT. Some jurisdictions tax manufacturer rebates on the full price, which is why the tax basis is selectable.

Formula

Discount and tax

net = price x (1 - discount); total = net + tax basis x tax rate

Worked example

With the default values below, Discount And Tax Calculator returns Amount to pay of $225.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

List price: 250
Discount: 25 %
Sales tax or VAT: 20 %
Tax applied toone of Discounted price, Full price: Discounted price

Results

Amount to pay: $225.00
Discount: $62.50
Tax: $37.50
Price before tax: $187.50

Step by step

1Values used
2Discount and tax
3Amount to pay= 225.00
4Discount= 62.50
5Tax= 37.50
6Price before tax= 187.50

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Does a discount reduce the tax?

With a retailer discount, yes — tax is charged on what you actually pay. Manufacturer coupons are treated differently in some tax systems.

Are prices shown with tax included?

In the UK and EU, retail prices to consumers include VAT. In the US, sales tax is normally added at the till.