Discount, Tax, Tip, Markup, & Commission

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What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated 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 an 18% tip on a $67.45 bill, calculate 67.45 x 0.18.

Front

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 final price after a discount?

Back

To find the final price after a discount, subtract the discount amount from the original price. For example, if an item costs $100 and has a 20% discount, the discount is $20, making the final price $80.

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What is tax?

Back

Tax is a mandatory financial charge imposed by a government on income, goods, or services.

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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 $50 item with a 5% tax, calculate 50 x 0.05.

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What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

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How do you calculate markup?

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To calculate markup, subtract the cost price from the selling price, then divide by the cost price and multiply by 100 to get a percentage.

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What is commission?

Back

Commission is a fee paid to an employee or agent for their services, typically calculated as a percentage of the sales they generate.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales by the commission rate (as a decimal). For example, for $1,000 in sales with a 10% commission, calculate 1000 x 0.10.