GST-Inclusive vs GST-Exclusive Pricing

Q: How do I add GST to a price?

Multiply the GST-exclusive amount by 1.15. For example, $100 plus GST is $100 times 1.15, which is $115.

🏷 Two Ways to Show the Same Price

A price can be shown in two ways: with GST already included, or without GST, to be added on top. They describe the same product but look very different, and confusing them is a common and expensive mistake, especially when getting quotes for building work, services, or anything from a GST-registered supplier. Knowing which one you are looking at means you always know the real cost.

                Key Point: A GST-inclusive price already contains the GST, so it is the total you actually pay. A GST-exclusive price, often shown as plus GST, does not include GST yet, so the final cost will be higher. Consumer retail prices are normally GST-inclusive, while business and trade quotes are often GST-exclusive. Always check which one a price is before you commit.
            

The Two Labels

GST-inclusive: GST is already in the number. This is the final price.
GST-exclusive (plus GST): GST is not in the number yet. Add GST to get the final price.

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➕ Adding GST to an Exclusive Price

If a price is GST-exclusive, you add GST to find the total. At a 15 percent rate, you multiply the exclusive price by 1.15. The examples below use 15 percent for illustration, so always use the current rate.

Exclusive price: 100 dollars plus GST

GST at 15 percent: 100 times 0.15 equals 15 dollars

Inclusive total: 100 plus 15 equals 115 dollars

Shortcut: multiply the exclusive price by 1.15

Why This Trips People Up

A quote of 100 dollars plus GST sounds the same as a shelf price of 100 dollars, but you actually pay 115 dollars. On a large job, like a renovation quoted at tens of thousands plus GST, that gap is significant. People who assume a plus-GST quote is the final price can be caught well short.

                Plus GST means more: Whenever you see plus GST, mentally add the GST before comparing it to anything. A plus-GST price is always lower than the amount you will actually hand over.
            

Use the GST Calculator to add GST to any exclusive price instantly.

➖ Removing GST From an Inclusive Price

Sometimes you have the GST-inclusive total and need to find the GST portion or the pre-GST amount, for example to fill in a return or to see how much of a receipt is GST. You cannot simply take 15 percent off the inclusive price, because the 15 percent was added to the smaller exclusive amount, not the larger inclusive one.

The Correct Method

Inclusive price: 115 dollars

To find the GST-exclusive amount: divide by 1.15

115 divided by 1.15 equals 100 dollars

GST portion: 115 minus 100 equals 15 dollars

A handy shortcut for the GST portion of a 15 percent inclusive price is to divide the total by 23 and multiply by 3, which gives the same answer. The point is that removing GST is not the same calculation as adding it, and getting this wrong understates the GST in a receipt.

Do not just subtract 15 percent: Taking 15 percent off an inclusive price gives the wrong answer, because the GST was calculated on the lower exclusive figure. Always divide by 1.15 to remove GST at a 15 percent rate. Our Reverse GST Calculator does this for you.

💡 Comparing Prices the Right Way

Compare Like With Like

The golden rule is to compare prices on the same basis. If one supplier quotes inclusive and another quotes exclusive, convert them to the same basis before deciding. Comparing an inclusive price against a plus-GST price makes the plus-GST option look cheaper than it really is.

You see	What it means	To compare
120 dollars (incl GST)	Final price you pay	Already inclusive
110 dollars plus GST	GST added on top	Multiply by 1.15 first

Reading Quotes and Invoices

Look for the words including GST, incl GST, plus GST, or exclusive of GST.
A tax invoice should show the GST amount separately, so you can see it clearly.
If a quote is silent on GST, ask before assuming.

                For consumers: Under consumer rules, prices advertised to the general public are normally shown GST-inclusive, so the price you see is the price you pay. It is in trade and business dealings that exclusive pricing is common, so be most alert there.
            

Final word: a GST-inclusive price is the total you pay; a GST-exclusive price needs GST added. Multiply by 1.15 to add GST and divide by 1.15 to remove it, at a 15 percent rate. Always compare prices on the same basis, and check which one a quote uses. This is general information, not tax advice; use the current GST rate.

🎯 Test Your Knowledge

Quiz on GST-Inclusive vs GST-Exclusive Pricing (20 Questions)

1. A GST-inclusive price is:

The total you actually pay, with GST already in it

The price before GST

Always wrong

GST only

2. A GST-exclusive price, or plus GST, means:

GST is not included yet and must be added

GST is already included

No GST applies

GST is refunded

3. Consumer retail prices are normally:

GST-inclusive

GST-exclusive

GST free

Shown plus GST

4. Business and trade quotes are often:

GST-exclusive (plus GST)

Always GST-inclusive

GST exempt

Tax free

5. To add 15 percent GST to an exclusive price, you:

Multiply by 1.15

Divide by 1.15

Subtract 15 percent

Multiply by 0.15 only

6. A price of 100 dollars plus GST at 15 percent becomes:

115 dollars

100 dollars

85 dollars

150 dollars

7. Assuming a plus-GST quote is the final price can leave you:

Caught short, because the real cost is higher

With change to spare

Paying no GST

Better off

8. To remove GST from a 15 percent inclusive price, you:

Divide by 1.15

Subtract 15 percent

Multiply by 1.15

Multiply by 0.85

9. Why can you not just subtract 15 percent from an inclusive price?

The GST was calculated on the smaller exclusive amount

GST is illegal

15 percent is the wrong rate

Subtraction is banned

10. From a 115 dollar inclusive price at 15 percent, the GST portion is:

15 dollars

17.25 dollars

23 dollars

0 dollars

11. A shortcut for the GST portion of a 15 percent inclusive total is:

Divide by 23 and multiply by 3

Divide by 15

Multiply by 15

Subtract 23

12. The golden rule when comparing prices is to:

Compare them on the same basis

Always pick the smallest number

Ignore GST

Trust the first quote

13. Comparing an inclusive price against a plus-GST price makes the plus-GST option look:

Cheaper than it really is

More expensive

Identical

GST free

14. A proper tax invoice should:

Show the GST amount separately

Hide the GST

Never mention GST

Round GST away

15. If a quote is silent on GST, you should:

Ask before assuming

Assume it includes GST

Assume it excludes GST

Ignore it

16. On a large job quoted plus GST, the GST gap is:

Significant and worth planning for

Tiny and ignorable

Always refunded

Paid by the supplier

17. Under consumer rules, prices advertised to the public are normally:

GST-inclusive, so the price shown is the price paid

Plus GST

GST exempt

Negotiable on GST

18. The words to watch for on a quote include:

Including GST, plus GST, or exclusive of GST

Only the total

Only the date

Only the logo

19. To convert a plus-GST price for comparison, you:

Multiply by 1.15 first

Leave it as is

Divide by 1.15

Subtract GST

20. The best summary is:

Inclusive is the total; exclusive needs GST added; compare on the same basis

All prices are the same

GST never changes a price

Always subtract 15 percent

Frequently Asked Questions

What is the difference between GST-inclusive and GST-exclusive prices?

A GST-exclusive price is before 15% GST is added; a GST-inclusive price already contains the GST. Businesses often quote exclusive prices, while consumer prices must be shown inclusive.

How do I add GST to a price?

Multiply the GST-exclusive amount by 1.15. For example,

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Reviewed and maintained. Last reviewed 2026-07-02 and checked on a twice-monthly cycle against IRD, RBNZ and Stats NZ. How we keep data current.

00 plus GST is

If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.

Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.

Calculate.co.nz is the sister site of CalculatorHub.com, the world's largest calculator website by tool count.

All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.

Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.

Calculate.co.nz is hosted in Auckland via SiteHost new Zealand.

Reviewed and maintained. Last reviewed 2026-07-02 and checked on a twice-monthly cycle against IRD, RBNZ and Stats NZ. How we keep data current.

00 times 1.15, which is

If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.

Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.

Calculate.co.nz is the sister site of CalculatorHub.com, the world's largest calculator website by tool count.

All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.

Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.

Calculate.co.nz is hosted in Auckland via SiteHost new Zealand.

Reviewed and maintained. Last reviewed 2026-07-02 and checked on a twice-monthly cycle against IRD, RBNZ and Stats NZ. How we keep data current.

15.

How do I find the GST content of an inclusive price?

Multiply the GST-inclusive total by 3 and divide by 23, or simply divide the total by 23 for the GST share. Taking 15% of the inclusive price gives the wrong answer.

Do prices shown to consumers have to include GST?

Yes. Prices advertised to the public in New Zealand must be GST-inclusive, so the price you see is the price you pay.

If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.

Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.

Calculate.co.nz is the sister site of CalculatorHub.com, the world's largest calculator website by tool count.

All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.

Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.

Calculate.co.nz is hosted in Auckland via SiteHost new Zealand.

Reviewed and maintained. Last reviewed 2026-07-02 and checked on a twice-monthly cycle against IRD, RBNZ and Stats NZ. How we keep data current.

GST-Inclusive vs GST-Exclusive Pricing

🏷 Two Ways to Show the Same Price

The Two Labels

➕ Adding GST to an Exclusive Price

Why This Trips People Up

➖ Removing GST From an Inclusive Price

The Correct Method

💡 Comparing Prices the Right Way

Compare Like With Like

Reading Quotes and Invoices

🎯 Test Your Knowledge

Quiz Complete!

Frequently Asked Questions

What is the difference between GST-inclusive and GST-exclusive prices?

How do I add GST to a price?

How do I find the GST content of an inclusive price?

Do prices shown to consumers have to include GST?