Reverse Sales Tax Calculator
$500.00 + 20% tax= $416.67 Original Price (before tax)
See exactly how we calculated the pre-tax price from your tax-inclusive amount. Our step-by-step breakdown shows the precise mathematics behind removing sales tax from a total price.
Final price with tax: $500.00
Convert tax rate to decimal: 20% ÷ 100 = 0.200
Calculate divisor (1 + tax rate): 1 + 0.200 = 1.200
Divide final price by divisor: $500.00 ÷ 1.200 = $416.67
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How It Works
To find the original price before tax, divide the tax-inclusive amount by (1 + tax rate as decimal). This calculator handles the math for you, showing each step of the process.
The Formula
Original Price = Final Price ÷ (1 + Tax Rate%/100)
Example Calculation
For a final price of $500.00 with 20% tax rate, divide $500.00 by (1 + 20/100) to get the original price of $416.67. The tax amount is $83.33.