Sales Tax, Tips, Markups, & Discounts

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What is sales tax?

Back

A sales tax is a percentage of the sale price of goods or services that is added to the total cost, collected by the seller and paid to the government.

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How do you calculate the total cost including sales tax?

Back

Total Cost = Original Price + (Original Price x Sales Tax Rate)

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What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

Tip = Total Bill x Tip Percentage

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What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage.

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How do you calculate the sale price after a discount?

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Sale Price = Original Price - (Original Price x Discount Rate)

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What is a markup?

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A markup is an increase in the price of a product, usually expressed as a percentage of the cost price.

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How do you calculate the sale price with a markup?

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Sale Price = Cost Price + (Cost Price x Markup Percentage)

Front

If a meal costs $20 and the sales tax is 7%, what is the total cost?

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Total Cost = $20 + ($20 x 0.07) = $21.40

Front

If a pair of boots costs $94.99 and is 25% off, what is the sale price?

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Sale Price = $94.99 - ($94.99 x 0.25) = $71.24