Notes on Tax, Tip, and Markup
Tax/Tip/Markup
Tax and Tip are a percent of a total that you pay extra in addition to the total.
Markup is a percent of a total price that the company adds onto the price.
To find the amount of tax/tip/markup:
%(as a decimal) • price
Example 1: What is 18% tip on a $34.80 bill?
.18 • 34.80 = $6.264 = $6.26 round to the hundredths
To find the TOTAL with tax/tip/markup:
1.%(write as a decimal) • price
Example 1: 85% markup on a scarf that wholesales for $8. Find the markup
price(retail price)
1.85 • 8 = $14.80
Example 2: Find the total cost of a bill totaling $45.60 with a 8.25% tax added
on.
1.0825 • 45.60 = $49.36
Examples:
1. Chris wants to leave a 20% tip for the waitress. His bill is $56.78. How much
tip does he leave?
56.78 x .20 = 11.356
11.36 (Tip)
2. Find the markup amount on an item that costs $120 with a 45% markup.
120 x .45 = $54 (Markup)
3. What is the tax on a bill that totals $7.89 with a 7.5% tax rate?
7.89 x .075 = 0.59175
.59 cents (Tax)
4. Jules goes out with friends and spends a total of $66.20 on dinner. There is
also an 8% tax. What is the total of their bill including tax?
100% + 8%
1.0 + .08
1.08
66.20 x 1.08 = 71.496
71.50 (Total with tax)
5. Kenny goes to dinner and the bill comes to $65.50. He wants to leave a tip
of 15%. How much will he pay in total including the tip?
100% + 15%
1.0 + .15
1.15
65.50 x 1.15 = 75.325
75.33 (Total including the tip)
Find the original price or cost of an item before tax/tip/markup:
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
1.%(𝑎𝑠 𝑎 𝑑𝑒𝑐𝑖𝑚𝑎𝑙)
Example 1: The total cost for a scarf including an 85% markup is $14.80. Find
the original cost of the scarf before the markup?
= $8 original price
14.80
1.85
Examples:
6. The total for a shirt with a 7% sales tax is $48.15. Find the original price of
the shirt before the tax.
48.15 = $45
1.07
7. Mrs. Woolard goes to dinner with her husband and they pay a total of
$66.72 including a 20% tip. Find the original cost of their bill before the tip.
66.72 = 55.60
1.20
