Tax-Exclusive Price Calculator
Net revenue from a gross price, correctly.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Price excluding tax
$49.99
$10.00 of tax removed
Dividing by 1.2000 is right; multiplying by 80% is not. The wrong method understates net revenue by $2.00 per unit — $800 a month at this volume, all of it silently missing from your reporting.
How the Tax-Exclusive Price Calculator works
Your net revenue from a tax-inclusive price is the gross divided by one plus the rate. Subtracting the rate as a percentage instead is the single most common arithmetic error in ecommerce accounting, and because it always errs in the same direction it never washes out.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I get the net from a gross price?
Divide by 1 plus the rate. At 20%, divide by 1.2. Do not multiply by 80% — that gives a different and wrong answer.
How big is the difference?
At 20% VAT, dividing gives 83.33% of the gross while multiplying by 80% gives 80% — a 3.33 percentage point gap. On £50,000 of monthly gross sales that is £1,667 of revenue misplaced every month.
Why does this matter for reporting?
Because net revenue drives margin, ad spend ratios and forecasting. A consistent 3% understatement makes every derived metric wrong in the same direction, which is worse than random noise — it looks like a real trend.
Does this apply to marketplace payouts?
Yes, and it is where it bites hardest. Payout reports usually give gross figures with tax and fees mixed in, and reconstructing net revenue means dividing correctly at every step.