A tool exists that determines the pre-tax amount of a purchase, given the total cost including sales tax. It essentially works backward from the final price. For instance, if an item costs $106.00 after a 6% sales tax is applied, this tool calculates the original price of the item as $100.00.
This calculation is valuable for individuals and businesses alike. It allows consumers to ascertain the actual cost of goods before tax is added, aiding in budgeting and price comparisons. Businesses can use it to reconcile sales records, verifying that the correct tax amount has been collected and remitted.