Purchase Order Total Calculator
Build a purchase order total from unit price and quantity, then layer on a discount, sales tax and shipping to see the exact amount owed.
How it works
Goods = unit price × qty · Net goods = goods × (1 − discount%) · Tax = (net goods [+ shipping]) × tax% · Total = net goods + shipping + tax
A purchase order total stacks in a specific order: discount the goods first, then apply tax, then add freight. Whether tax applies to shipping varies by jurisdiction and by whether shipping is separately stated, which is why it is a toggle here. Getting the sequence right matters because applying tax before the volume discount would overstate what the buyer actually owes.
Worked example
100 units at $24.50 is $2,450 in goods. A 10% discount takes it to $2,205; 8% tax on the goods adds $176.40; add $75 shipping and the PO total is $2,456.40.
Frequently asked questions
Should discount come before or after tax?
Always before. Tax is charged on the actual price paid, so the volume discount reduces the taxable amount. Applying tax first would overcharge the buyer.
Is shipping taxable?
It depends on the jurisdiction and whether shipping is listed separately from the goods. Some states tax delivery charges, others do not — use the toggle to match your local rule.
What is the difference between a purchase order and an invoice?
A purchase order is the buyer’s commitment to buy at agreed terms; the invoice is the seller’s request for payment once goods ship. The totals should match if nothing changed between them.
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Educational estimate, not financial advice.