Invoice total with tax & discounts. The Invoice Calculator takes subtotal (before discount and tax), discount, tax rate (gst/vat/sales tax), shipping or other charges (not taxed) and returns invoice total plus amount after discount, tax, discount given. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Invoice Calculator works
The discount is applied first and tax is charged on the discounted amount, which is how invoices are legally required to be computed in most jurisdictions.
Worked example
With the example values (subtotal (before discount and tax) of $1,000, discount of 10%, tax rate (gst/vat/sales tax) of 18%, shipping or other charges (not taxed) of $50), the invoice total is $1,112.00; amount after discount $900.00, tax $162.00, discount given $100.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is invoice total calculated?
total = subtotal × (1 − discount) × (1 + tax rate) + other charges.
Which figures do I need?
Subtotal (before discount and tax), discount, tax rate (gst/vat/sales tax), shipping or other charges (not taxed). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
