How to use the rebate calculator
- Enter the price at the register, before any rebate.
- Add a sales tax rate if you want it counted. It is applied to the price before the rebate.
- List each rebate you plan to claim with its amount. Add a row for every additional rebate.
- Enter any cost to claim, such as postage, then read the net cost and the cost if you never claim.
Formula
Paid at checkout = price + sales tax
Total rebates = the sum of every rebate you claim
Net cost = paid at checkout - total rebates + cost to claim
Rebate as a percent of the price = total rebates / price x 100%
If you never claim the rebate, you keep the amount paid at checkout as your cost.
A $200 item with a $30 mail-in rebate
With no tax, you pay $200 at the register and receive $30 later, so the net cost is $170. The rebate is 15% of the price, and the net cost is 85% of it. If you forget to claim it, the item costs $200.
With 8% sales tax, checkout is $216.00 and the net cost is $186.00 after the rebate. If it costs you $1.50 in postage to claim it, the net cost is $187.50.
Why the rebate price is conditional
A rebate is paid after the sale and only if you complete the claim. The advertised price after rebate assumes you will do the paperwork correctly before the deadline, and not every shopper does.
Compare the net cost to the price you would pay without the rebate, and consider whether the effort is worth the savings, especially for a small amount.
Details this tool leaves out
Rebates may arrive as a check, a prepaid card or store credit, and the form can affect how useful they are. Tax rules for rebates vary, so this tool applies sales tax to the price before the rebate and you should check how your state handles it.
Use the discount calculator for an instant percent off, the coupon vs percent off calculator to compare offers and the sales tax calculator to figure the tax on its own.
Assumptions and limits
- You claim every rebate you list, correctly and on time.
- Sales tax is figured on the price before any rebate, and you can leave it blank.
- The cost to claim is a single amount you enter and is added to the net cost.
- Payout form, delay and any tax on the rebate itself are not modeled.
Frequently asked questions
How do I calculate the price after a rebate?
Subtract the rebate from what you paid. A $200 item with a $30 rebate has a net cost of $170, and you can add sales tax or claim costs if they apply.
Is sales tax charged on the price before or after the rebate?
It depends on the state and the type of rebate, and this tool assumes the price before the rebate. Check your own rules if the amount matters.
What if I do not claim the rebate?
Then the item costs what you paid at checkout. The tool shows that number next to the net cost so you can see what is at stake.
Can I add more than one rebate?
Yes. Add a row for each rebate and the tool adds them. Check the terms, because some offers cannot be combined.