Plain-English glossary
Invoice Basics Glossary
Use this glossary when checking a quote, invoice, discount, tax line or price calculation.
What this glossary is for
Invoice totals depend on order. A discount before tax, a discount after tax and a tax-inclusive price can produce different results.
Key terms
Line item
One product, service or charge listed on an invoice.
Subtotal
The total before discounts, tax or extra fees are applied.
Discount
An amount removed from a price. It can be a fixed amount or a percentage.
Tax / VAT
An added or included tax amount depending on local rules and invoice format.
Invoice total
The final amount due after all lines, discounts, tax and fees are counted.
Markup
How much is added to cost to create a selling price.
Profit margin
Profit as a percentage of selling price, not cost.
How to use the terms
Read the definition first, then open the calculator that uses the same term. Change one input at a time so you can see which number drives the result.
Main related calculator
The first tool below is the most directly related calculator for this glossary. The remaining links stay within the same topic so the page does not send visitors into unrelated tools.