Remove GST from a price with GST included

Remove GST from a price with GST included

Price excl. GST:
$0.00
GST 5%
$0.00
Total incl. GST:
$0.00

How to remove GST from a price with GST included?

This guide explains how to remove GST from a final price and how to check the result using the calculator.

How to find out the price without GST of a product

The opposite situation may also arise, where you want to remove GST from a price. This happens when the price tag gives one, but with the comment that GST is included. Knowing the net price of the product could be a perfectly valid question to have.

Formula to remove GST from a final price

This can be answered by applying the formula:

X
=
Price with GST
1.05
=
Result price without GST

Example to remove GST at 5%

In this case, the $252 of the total product price would be divided by 1.05. Giving the following result:

X
=
$252
1.05
=
$240

Summary of operations for GST at 5%

In summary, if you have an GST of 5%, these are the operations to perform:

  • $240 × 0.05 = $12 (To calculate GST on prices that do not have it)
  • $240 × 1.05 = $252 (To calculate the total price with GST included)
  • $252 ÷ 1.05 = $240 (To calculate the price without GST)