How to calculate Price with sales tax
The Price with sales tax formula, with plain worked examples you can check yourself.
Price with sales tax = P × (1 + t)
Worked examples
P = 200 · t = 8%Price with sales tax = 216
P = 200 · t = 8%Price with sales tax = 216
P = 500 · t = 20%Price with sales tax = 600
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Positioning & Pricing.
Related terms
Value propositionMarket segmentationPenetration pricingPrice skimmingCompetitive pricingUnique selling proposition
Practice Price with sales tax with real numbers
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