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Tax & Margin Calculator

Reverse GST & VAT calculator

The formula, a worked example, and the error this particular calculation tends to produce.

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How it works

You have a tax-inclusive total and need the amount before tax — off a receipt, a supplier invoice, or a marketplace payout that quoted one figure including tax.

The formula

tax = total × rate ÷ (100 + rate) net = total − tax

  1. Pick the country, or type the rate from the invoice.
  2. Choose "Remove tax" and enter the tax-inclusive total.
  3. Read the amount before tax and the tax contained in the total.

Worked example

Example
Item Value
Total including tax₹1,180.00
rate18%
Tax₹180.00
Before tax₹1,000.00

The mistake to avoid

Multiplying the total by the rate. That computes tax on an amount which already includes tax, so it overstates the tax by the rate again — 21.24 instead of 18.00 on a total of 118 at 18%. The division is the only correct form.

Questions people ask

What is the difference between margin and markup?
Markup is profit as a share of cost; margin is profit as a share of the selling price. Cost 100 with a 50% markup sells at 150; cost 100 at a 50% margin sells at 200. They agree only at zero, and the gap widens as the percentage rises — at a 70% target the difference is more than double.
Should I apply my margin before or after tax?
Before. Consumption tax is collected on behalf of the government and was never your revenue, so the margin belongs on the tax-exclusive price. Taking the margin on the tax-inclusive figure understates your real margin and underprices the item.

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