Subtotal

Definition

The subtotal is the combined price of every item on a receipt before tax, tip, or discounts are added.

On a receipt, the subtotal sits below the itemised list and above the tax line. It is calculated by multiplying each item's quantity by its unit price and adding the results together. Sales tax, VAT, tips, and service charges are then applied on top of the subtotal to reach the grand total. Because tax is normally computed from the subtotal rather than item by item, the subtotal is the anchor figure that keeps a receipt's arithmetic consistent.