Pre-Tax Price Calculator
Use this calculator when someone gives you a tax-inclusive figure and you need the before-tax amount for budgets, margin checks, or side-by-side vendor quotes.
Calculator
Calculate tax backwards
$100.00 at 10% Tax: pre-tax $90.91, Tax $9.09.
Estimate only. Verify official rates before filing, invoicing, or making tax decisions.
Calculator
Pre-Tax Price Calculator
Starting rate
10%
Rate setting
Enter the rate you want to use
Last updated
2026-05-15
Formula
How reverse tax calculation works
To recover the amount before tax from a quote or invoice line that already includes tax, divide by 1 plus the rate as a decimal. Finance teams often call that result the pre-tax amount, net amount, or amount before tax.
Pre-tax Price = Total Price / (1 + Tax Rate)
Tax Amount = Total Price - Pre-tax Price
Example
$100.00 tax-inclusive total with 10% tax
- Tax multiplier = 1 + 10% = 1.10
- Pre-tax price = 100 / 1.10 = 90.91
- Tax amount = 100.00 - 90.91 = 9.09
FAQ
Common questions
How do you reverse calculate tax?
Divide the tax-inclusive total by 1 plus the tax rate. For example, with a 20% tax rate, divide the total by 1.20.
What is the reverse tax formula?
Pre-tax price = total price / (1 + tax rate). Tax amount = total price - pre-tax price.
Is this calculator tax advice?
No. This is an educational calculator for estimates. Confirm official rates and rules before filing, invoicing, or relying on the result.
What is pre-tax price?
Pre-tax price is the amount before tax is applied. When you only know the tax-inclusive total, divide by 1 plus the tax rate to recover it.
How is this different from markup?
Markup adds profit on top of cost. A pre-tax calculation removes tax that is already included in a gross amount. The math is similar only in that both use multipliers.
Can I use this for quotes that include VAT?
Yes when one VAT rate applies to the entire quote. Use the UK reverse VAT calculator when you need UK-specific reference context.
Is price before tax the same as the net line on an invoice?
Often yes for a single taxable line: the before-tax amount is what the tax rate was applied to. If shipping, discounts, or mixed rates appear, split those lines first so each uses the right rate.
How do I send a customer the amount before tax from a tax-inclusive price?
Enter the tax-inclusive total and the correct combined rate, then share the calculated amount before tax. Remind them to confirm the rate and rounding rules for the transaction.
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