What is a sales tax decalculator?
A sales tax decalculator will tell you the pre-tax price of a good or service when the total price and tax rate are known.
You can download our free Excel template to determine the pre-tax price.
How the sales tax decalculator works
The Excel sales tax decalculator works by using a formula that takes the following steps:
Step 1: take the total price and divide it by one plus the tax rate
Step 2: multiply the result from step one by the tax rate to get the dollars of tax
Step 3: subtract the dollars of tax from step 2 from the total price
Download the Free Sales Tax Decalculator Template
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Pre-tax price formula used by the sales tax decalculator
Here is the formula for decalculating the tax, or determining the pre-tax price of the good/service.
Pre-Tax Price = TP – [(TP / (1 + r) x r]
TP = Total Price
r = Tax rate
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More Excel and finance resources
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