Finance

VAT Calculator

Add VAT to a net amount or work backwards from a VAT-inclusive price to find the net amount and the tax portion. Preset rates for the UK and EU plus any custom rate, with the net, VAT and gross always shown side by side.

Examples

Input
£100 net + 20% VAT
Output
£120 gross (£20 VAT)
Input · 120 ÷ 1.20
£120 gross, remove 20%
Output
£100 net (£20 VAT)

How it works

“Add VAT” takes a net price: VAT = net × rate ÷ 100, and gross = net + VAT. “Remove VAT” takes a price that already includes VAT and divides it: net = gross ÷ (1 + rate ÷ 100).

Add:     100 net at 20%    →  20 VAT, 120 gross
Remove:  120 gross at 20%  →  100 net, 20 VAT

Taking 20% off 120 gives 96, which is wrong, because the 20% was charged on 100. A quick check at the 20% rate: the VAT is always one sixth of the gross price. Presets cover 20%, 5%, 19% and 21%, and “Custom” accepts any rate.

How to use VAT Calculator

Pick a mode
Add VAT to a net price, or remove VAT from a VAT-inclusive price.
Enter amount and rate
Type the amount and pick a preset rate (20%, 5%) or enter your own.
Read the split
Net amount, VAT portion and gross total are shown together.

Why use this tool

Both directions: add VAT and reverse (remove) VAT
Presets for common rates plus any custom rate
Always shows net, VAT and gross side by side
Formula shown — no black box

Frequently asked questions

Divide the gross price by (1 + rate). For 20% VAT: gross ÷ 1.20 gives the net; the difference is the VAT. Note: you do NOT subtract 20% of the gross — that over-removes.

The UK standard rate is 20% with a 5% reduced rate. EU standard rates range roughly from 17% to 27% by country. Use the custom field for any other rate.

VAT is included in displayed prices and charged at each stage of the supply chain; US-style sales tax is added at the register. For US sales tax, use our Sales Tax Calculator.

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