What is price rounding?

In online selling, it's common for the total amount displayed during the checkout to have inconsistent price endings. This inconsistency arises from the inclusion of VAT to the product prices.

When you enable the "include tax in prices" option during the tax setup process, product prices are displayed with the value-added tax (VAT) already included.

To address this issue and provide a more consistent and streamlined purchasing experience, sellers implement price rounding.

Price rounding is a practice used to adjust the total price of goods or services to a more standardized value, such as the nearest whole number or a specific decimal place. By employing price rounding sellers can simplify transactions and improve the overall user experience for buyers.

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When price rounding is enabled, prices are automatically rounded to the most common denominator.