Goods can be purchased or sold where sales tax is collected based on the type of product. Sometimes we can purchase different items with different sales tax percentage where it becomes difficult to estimate total tax collected. But here this calculator makes calculation of tax as simple task.
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Retail price and Net unit price
Retail price is the original price of the item without any addition of taxes whereas net unit price is the amount the item after addition of sales tax to the retail price. When this net unit price is multiplied with quantity of that particular item it will give net price of all the similar items.
Suppose you have purchased an item at retail price of 50$ with tax at the rate of 10% then net unit price will be=50 + 50 x (10/100)=55$. Now quantity of the same item purchased is 5, then net total price will be=55 x 5=175$.
How this calculator works?
Simply add item name, retail price, percentage of tax that is collected and finally quantity of item purchased. You can add any number of items here. If required to add more items, click add row button so that you can further extend the number of items in the list. Name of the item is optional but you can also add any short name for it.
Tax based on retail price or net unit price
Many of the times calculation of tax on item goes wrong when it calculated on net unit price rather than retail price. For instance, if an item is purchased at 100$ and tax collected is 5% then retail price of the item is not equal to 95$. This gives wrong interpretation and result. Sales tax percentage is always to be calculated on the retail price rather than net unit price.
Easy calculation of sales tax
Even though percentage of sale tax is to be applied on the retail price but still you can calculate sales tax amount if you know net unit price of the item. Here you can choose in the calculator whether you know net unit price or retail price of the item. Suppose if you select net unit price and then entered the data, this calculator will calculate by a retro method and will find out the sales tax amount that is already being included in the net unit price.