Sales Tax Calculator

Add or extract a general sales-tax amount from a price.

Enter your values

Change any field. The result is recalculated on this device.

Formula, example and assumptions
Gross amount₹1,080.00
Indian rupees
%

Your result

Local calculation
Gross amount₹1,080.00

The gross amount is the price including sales tax; the net amount excludes it. Choose whether to add tax to your entered price or extract tax already included in it.

Sales tax rate (%)
8 %
Amount type
Before tax
See how this is calculated

Result breakdown

Sales tax
₹80.00
Net amount
₹1,000.00
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Amount
₹1,000
Sales tax rate (%)
8 %
Amount type
Before tax

Method

Let r = tax percentage ÷ 100. Add mode: gross = net × (1 + r), tax = net × r. Extract mode: net = gross ÷ (1 + r), tax = gross − net = gross × r ÷ (1 + r).

Read the worked example and assumptions

How this calculation works

Add a manually supplied sales-tax percentage to a net price, or recover the net price from a tax-inclusive receipt. The two modes answer different questions: multiplying a gross amount by the tax rate does not correctly extract tax already included. Use the rate applicable to the particular place, product and transaction; this tool does not look up taxability.

Let r = tax percentage ÷ 100. Add mode: gross = net × (1 + r), tax = net × r. Extract mode: net = gross ÷ (1 + r), tax = gross − net = gross × r ÷ (1 + r).

Worked example

This example uses illustrative inputs. Your current result is shown above.

For a tax-inclusive amount of ₹1,080 at an illustrative 8% rate, choose Extract. Net price is ₹1,080 ÷ 1.08 = ₹1,000 and tax is ₹80. Applying 8% directly to ₹1,080 would incorrectly produce ₹86.40.

Assumptions and limits

  • One entered ad-valorem rate applies to the entire amount. No jurisdictional rate, exemption or filing obligation is selected automatically.
  • Multiple independently applied taxes must first be reduced to the appropriate effective rate; compound taxes cannot simply be added without checking their bases.

Questions people ask

Does the calculator determine my local sales-tax rate?

No. Supply the verified rate and the taxable amount from the relevant authority or invoice.

Does VAT use different arithmetic?

A single percentage VAT calculation uses the same add/extract arithmetic. The VAT page explains its invoice context; neither page determines input-tax recovery or tax due on a return.

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