Tax/Fee Rounding

Tax/Fee Rounding

For payment processing and tax rounding we utilize bankers rounding, also known as rounding to half even.

Original Rounding

Bankers Rounding

65.1758

65.18

225.3030

225.30

-119.754

-119.76

=675.292

=675.29

 

 

In some cases an extra penny will seem to appear when calculating tax across multiple items on an order. This is due to the tax rate, for example, 8.25%, and the amount of items for which it is calculated across, for example, 3 cups of coffee, and the use of bankers rounding. (See below)

$4.99 x 3 = $14.97

4.99 x .0825 = .411675  

.411675 x 3 = 1.235025

$14.97 + $1.24 = $16.21

 

Item

Price

Quantity

Tax Rate

Total

Item

Price

Quantity

Tax Rate

Total

Coffee

$4.99

3

8.25%

$16.21

Â