Is tax applied before or after a discount?
After. Discounts reduce the taxable base, so the correct order is subtotal, minus discount, then tax on the discounted amount.
Calculate invoice totals with multiple line items, tax, and discounts. Perfect for freelancers, contractors, and small business owners.
Line total = quantity × unit price. Subtotal = sum of line totals. Total due = subtotal − discount + tax (subtotal × tax rate) + shipping.
12 hours at $85 is $1,020. Apply a 10% discount ($102) and 8.5% sales tax on $918 ($78.03), and the invoice total is $996.03.
After. Discounts reduce the taxable base, so the correct order is subtotal, minus discount, then tax on the discounted amount.
A unique invoice number, issue and due dates, your business and tax details, the client's details, itemised lines, tax shown separately and payment instructions.
Net 14 or Net 15 gets paid faster than Net 30, and a stated late fee of 1.5% per month plus a deposit for new clients materially reduces overdue invoices.