Tax, Tip, Markup, Discount

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What is sales tax?

Back

Sales tax is a percentage of the sale price of goods or services that is added to the total cost, collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, for a $100 item with a 5% tax rate, the sales tax is $100 x 0.05 = $5.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate the amount saved from a discount?

Back

To calculate the amount saved from a discount, multiply the original price by the discount rate (as a decimal). For example, a 20% discount on a $50 item saves $50 x 0.20 = $10.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, typically calculated as a percentage of the total bill.

Front

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 a $30 bill with a 15% tip, the tip is $30 x 0.15 = $4.50.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage of the cost price.

Front

How do you calculate markup?

Back

To calculate markup, multiply the cost price by the markup percentage (as a decimal) and add it to the cost price. For example, a $50 item with a 30% markup costs $50 + ($50 x 0.30) = $65.

Front

What is the final price after tax?

Back

The final price after tax is the original price plus the sales tax. For example, if an item costs $100 and the sales tax is $8, the final price is $100 + $8 = $108.

Front

What is the total cost after applying a discount and tax?

Back

To find the total cost after a discount and tax, first calculate the discounted price, then add the sales tax to that price.