Invoice Total Calculator

Quantity

Unit price

Discount, %

Shipping

VAT, %

VAT in the price

Result

To pay$48,600.00
Excluding VAT$40,500.00
VAT$8,100.00
Discount$4,500.00
Before the discount$45,000.00
Total per unit$4,860.00

On top of, or already inside

Calculates an invoice total with a discount and shipping, adding tax on top or extracting it from a price that already includes it.

Two invoices with the same numbers can differ by twenty percent, depending on one detail: whether the tax is added to the price or already sitting in it. Getting that backwards is the commonest invoicing mistake there is.

Extracting tax is not the same as subtracting it. Twenty percent of a tax-inclusive total is not the tax; the tax is the total divided by 1.2 and subtracted, which is a sixth rather than a fifth.

What this calculator shows

The total to pay and the net amount without tax
The tax and the discount in money
The effective total per unit

What to keep in mind

The discount applies before the tax, which is the normal order: tax is charged on what is actually paid.
Shipping is treated as taxable along with the goods, as it usually is when it is part of the same supply.

FAQs

How do I extract tax from a total?

Divide by 1 plus the rate and subtract. At twenty percent, the tax inside a total is the total divided by six, not a fifth of it.

Does the discount come before or after tax?

Before. Tax is charged on the amount actually payable, so a discount reduces the tax with it.

Is shipping taxable?

Usually, when it is part of the same supply. A separately contracted carrier is a different transaction with its own treatment.

Why does the per-unit figure differ from the price?

Because it spreads the discount, the shipping and the tax across the units. It is the number to compare between quotes.

Worked example

Ten units with a discount

Input: 10 × 4,500, a 10 percent discount, 20 percent tax added on top

Output: 48,600 to pay, of which 8,100 is tax

Note: Had the same 4,500 been tax-inclusive, the total would be 40,500 with 6,750 of tax inside it. Same numbers, an eight-thousand difference.

Useful links

All tools in Business and warehouse calculators

Invoice Total Calculator

Result

Related tools

VAT Calculator: Add VAT or Extract VAT

Discount Calculator: Sale Price and Savings

Markup vs Margin Calculator

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