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# Net Purchases Calculator

This net purchase price calculation helps you to calculate the net purchase amount based on the total purchases, freight-in costs, purchase discounts, purchase returns and allowances. Net purchases reflect the actual costs necessary to bring the goods to their location for resale to an end customer. You can select currency in this net purchases calculator to find the cost. It is the debit balance in the purchases account minus the credit balances in the purchases returns, allowances and purchases discounts.

## Net Purchase Price Calculation

This net purchase price calculation helps you to calculate the net purchase amount based on the total purchases, freight-in costs, purchase discounts, purchase returns and allowances. Net purchases reflect the actual costs necessary to bring the goods to their location for resale to an end customer. You can select currency in this net purchases calculator to find the cost. It is the debit balance in the purchases account minus the credit balances in the purchases returns, allowances and purchases discounts.

Code to add this calci to your website

#### Formula:

Net Purchase Price = p - (d + a) Where, p = Amount of Total Purchases d = Purchase Discounts a = Purchase Returns & Allowance

### Example:

Calculate net purchase amount for total purchases of 5000 ₹, purchase discounts and allowances of 20 ₹ and 1500 ₹ .

#### Solution:

Net Purchase Cost = 5000 - (20 + 1500)
=3480 ₹