Subtotal
The subtotal is the sum of all line items before tax, discounts, and fees.
The subtotal totals every line item on the invoice before tax, shipping, discounts, or other adjustments are applied. Showing the subtotal as its own line makes the invoice's arithmetic transparent: customers can see exactly how the final total was built up.
Example
Three line items of $100, $50, and $25 give a subtotal of $175 before 10% tax is added.
Related terms
Frequently asked questions
Is the subtotal the amount the customer pays?
No — the subtotal excludes tax, discounts, and extra fees. The customer pays the grand total, which is the subtotal adjusted for all of those.
Where do discounts apply — before or after the subtotal?
Line-item discounts reduce the subtotal itself; an overall invoice discount is usually shown as a separate line after the subtotal. Either way, show the calculation so the customer can follow it.
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