Tax, Tip, Markup, Discount, etc.

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What is sales tax?

Back

Sales tax is a percentage of the sale price of goods or services that is collected by the seller and paid to the government.

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How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 9% tax, the tax is $100 x 0.09 = $9.

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What is a discount?

Back

A discount is a reduction in the price of an item, usually expressed as a percentage of the original price.

Front

How do you calculate the amount saved with a discount?

Back

To calculate the amount saved, multiply the original price by the discount rate (as a decimal). For example, a 25% discount on a $40 item saves $40 x 0.25 = $10.

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What is a tip?

Back

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

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How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with an 18% tip, the tip is $50 x 0.18 = $9.

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What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

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How do you calculate the selling price with markup?

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To calculate the selling price, add the markup amount to the cost price. For example, if an item costs $20 and has a 30% markup, the selling price is $20 + ($20 x 0.30) = $26.

Front

What is a final price?

Back

The final price is the total amount paid after all discounts, taxes, and fees have been applied.

Front

How do you find the final price after a discount and tax?

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First, calculate the discounted price, then add the sales tax to that amount. For example, for a $100 item with a 20% discount and 5% tax: Discounted price = $100 - ($100 x 0.20) = $80; Final price = $80 + ($80 x 0.05) = $84.