business calculator
Create invoice totals with tax, discounts, and line items.
Save this calculator to quickly double-check subtotals, taxes, and discounts before sending client invoices.
Invoice total
$2,430
Formula
Total = (subtotal - discount) + taxThe invoice estimate applies discount first, then calculates tax on the discounted taxable amount.
Step by step
Example
A $2,500 invoice with 10% discount and 8% tax totals $2,430.
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Summary
Grand Total Due
$2,430
Discount Saved
$250
Tax Amount
$180
Taxable Subtotal
$2,250
D3 visualization
Visual breakdown of the invoice total showing taxable net amount and tax added.
D3 visualization
Compare invoice adjustments: initial subtotal, discount reduction, tax addition, and net due.
Guide
When preparing invoices, discounts are standardly applied to the subtotal before sales tax is calculated. This is because tax is legally owed on the actual transactional price paid by the customer, not the pre-discount list price.
This estimator follows standard invoicing conventions: Subtotal -> Subtract Discount -> Apply Tax Rate on Taxable Amount -> Add Tax to get Invoice Total.
Taxable amount
The portion of transaction value subject to sales tax, GST, or VAT.
Invoice subtotal
The sum of all line item prices before discounts, taxes, or shipping are applied.
Invoice discounts reduce your gross revenue, meaning you pay income tax on the actual discounted sales price. It is not listed as a separate expense deduction, but rather reduces taxable business revenue directly.
Yes, in almost all tax jurisdictions, sales tax (or VAT/GST) is calculated on the net taxable subtotal after any commercial discounts have been subtracted.