How to use the VAT Calculator
- Enter the amount.
- Enter the VAT rate that applies to the goods or service. Check the current rate with your tax authority.
- Choose add VAT if your amount is the net price, or remove VAT if it is the gross price including VAT.
- Read the gross price, net price and the VAT amount.
Formula used
Add VAT: gross = net × (1 + rate). Remove VAT: net = gross ÷ (1 + rate), and VAT = gross − net.
Worked example
Here is the VAT Calculator worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Amount | £100 |
| VAT rate | 20 % |
| Calculation | Add VAT (amount is net) |
| Result | |
| Gross price (with VAT) | £120.00 |
| Net price (without VAT) | £100.00 |
| VAT amount | £20.00 |
VAT on 100 at different rates
The same net price of 100 at several rates.
| VAT rate | VAT amount | Gross price (with VAT) |
|---|---|---|
| 0 % | £0.00 | £100.00 |
| 5 % | £5.00 | £105.00 |
| 10 % | £10.00 | £110.00 |
| 20 % | £20.00 | £120.00 |
| 25 % | £25.00 | £125.00 |
Adding VAT
The gross price is the net price multiplied by 1 plus the VAT rate. At 20%, a net price of $100 becomes $100 × 1.2 = $120.00, of which $20.00 is VAT. The calculator shows prices with the currency you pick, so use the selector for pounds, euros or dollars.
The VAT amount scales with the rate. On a net price of 100, VAT is 0 at a zero rate, 5 at 5%, 10 at 10%, 20 at 20% and 25 at 25%.
Removing VAT
To get the net price from a gross price, divide by 1 plus the rate. For a gross price of 120 at 20%, the net price is 120 ÷ 1.2 = 100, and VAT is 20.
Do not subtract 20% from 120. That gives 96, which is wrong, because VAT is one sixth of the gross price at 20%, not one fifth.
Different rates in different places
VAT is used in the UK, the European Union and many other countries, and each sets its own standard rate. Many also have reduced rates for items such as food, books or energy, and a zero rate for some goods. Rates and rules change, so check the current rate with the official tax authority before you invoice or file a return.
This calculator does not know which rate applies to your goods. It only does the arithmetic once you choose the rate.
For small businesses and shoppers
If you are VAT-registered, you charge VAT on sales and can usually reclaim VAT on business purchases; the difference is paid to the tax authority. Keeping net and gross prices straight is the basis of correct invoices and bookkeeping. Rules for registration thresholds and special schemes vary, so read the official guidance or ask an accountant.
As a shopper, the calculator helps you see how much of a price is tax and compare prices between countries or shops that quote them differently.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1 plus the VAT rate. At 20%, multiply by 1.2.
How do I take VAT out of a gross price?
Divide the gross price by 1 plus the rate. At 20%, divide by 1.2, not subtract 20%.
What is the VAT rate?
It depends on the country and the goods. Check the current rate with the tax authority, because rates change.
What is the difference between net and gross?
Net is the price without VAT, gross is the price with VAT included.
Can I use this for GST?
Yes. GST and similar taxes use the same arithmetic. Enter the GST rate.
Does it work with euros and pounds?
Yes. Use the currency selector to change the symbol and number format. No conversion between currencies is done.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.