Calculation type: Finding the original value before a percentage increase (removing the tax). The default rate here is only an example — sales tax varies by state and locality.
Calculator usage: Use the
Original Before Increase Calculator (“What was the Original value before an Increase % resulted in the New value?”). Enter
8 [B] and $
216 [C]. The calculator will find the price before tax.
Watch out: You cannot simply subtract
8% from the total. $
216 − (
8 /
100) × $
216 = $
198.72 is NOT correct, because the tax was added to the price before tax, not to the total.
Formula explanation:
We want to find the price before tax, when the total of $
216
already contains
8% sales tax.
Formula: Price before tax = Total price / (1 + Tax rate / 100)
Price before tax = $
216 / (1 +
8 / 100) = $
216 /
1.08 = $
200
Tax amount = $
216 − $
200 = $
16