Resellers often buy tax-included at retail then markup net cost. Step one: reverse the tax. Step two: apply margin on the true pre-tax cost.
Resellers often buy tax-included at retail then markup net cost. Step one: reverse the tax. Step two: apply margin on the true pre-tax cost.
Step 2 — Your breakdown
We reverse the tax using the standard formula:
Enter a total and tax rate to see your breakdown.
Reverse-calculate pre-tax cost from your receipt, apply target markup percentage to that net amount, then decide whether resale price is tax-exclusive (typical US) or tax-inclusive.
Professional markup is calculated on pre-tax cost so margin percentages stay comparable across jurisdictions.
You paid $108.25 including 7.00% sales tax and need the merchandise amount for bookkeeping.
Pre-tax: $101.17 | Tax: $7.08 | Total: $108.25
Reverse math is for splitting receipts and estimates—it does not replace filing obligations, nexus analysis, or professional tax advice. Confirm rates with your state revenue department or marketplace reports before remitting.
Professional retail markup is usually applied to pre-tax cost so margin percentages stay comparable across jurisdictions.
