Subtotal

What is a subtotal?

The subtotal is the sum of all your line items before taxes, discounts, or other adjustments. If you have three line items totaling $500, $750, and $250, your subtotal is $1,500. Taxes and discounts are then applied to this subtotal to arrive at the final total.

Subtotal on invoices

A typical invoice calculation flow:

• Line items — Individual products or services with quantities and prices
• Subtotal — Sum of all line items
• Discount — Subtracted from subtotal (if applicable)
• Tax — Calculated on subtotal (or discounted amount)
• Total — Final amount due

Why show the subtotal?

Showing the subtotal helps clients understand the invoice breakdown. They can see the base cost of services before taxes and fees. This transparency builds trust and reduces questions about how the total was calculated.