Back out the pre-tax price when tax is already included in a total.
When a price already includes tax, you divide by one plus the tax rate to recover the pre-tax amount and the embedded tax. Totals that already include tax can mask how much you are paying in tax, so backing it out gives a clearer picture.
Tax Included Total
Pre-tax price = total with tax / (1 + tax rate)
Pre-tax price = total with tax / (1 + tax rate) When a price already includes tax, you divide by one plus the tax rate to recover the pre-tax amount and the embedded tax.
Totals that already include tax can mask how much you are paying in tax, so backing it out gives a clearer picture.
This calculator takes 2 inputs: Total with tax included, Tax rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.