VAT Calculator
Add VAT to a net price or strip it out of a gross price at any rate, showing the tax amount separately for invoicing.
- Category
- Calculators
- Updated
- Cost
- Free · no sign-up
Gross price
$300.00
VAT at 20%.
Removing VAT means dividing by 1 plus the rate — subtracting the percentage from the gross price takes off too much.
Adding and removing VAT
Value added tax is charged as a percentage of the net price. Adding it is straightforward; removing it is where the arithmetic catches people out.
- Add VAT:
gross = net × (1 + rate) - Remove VAT:
net = gross ÷ (1 + rate)
At 20%, a net price of 100 becomes 120 gross. Going the other way, 120 gross divides by 1.2 to give 100 net — the VAT element is 20, not 24.
Why subtracting the percentage is wrong
Taking 20% off a gross price of 120 gives 96. That's wrong, because the 20% was
calculated on the smaller net figure, not the gross one. The shortcut for
extracting VAT at 20% is to divide the gross by 6; at other rates, divide by
(1 + rate) ÷ rate.
| Rate | VAT fraction of gross |
|---|---|
| 5% | 1/21 |
| 10% | 1/11 |
| 20% | 1/6 |
| 25% | 1/5 |
VAT, GST and sales tax
The names differ and so does the mechanism:
- VAT / GST is collected at every stage of the supply chain, with businesses reclaiming what they paid on inputs. Consumer prices are usually quoted inclusive.
- US sales tax is charged once, at the final sale, and is normally quoted separately at the till.
Rates vary widely by country and by product category — food, books, children's clothing and medical supplies often carry reduced or zero rates. Check the applicable rate for what you're selling rather than assuming the standard one.
For invoicing
An invoice generally has to show the net amount, the VAT rate, the VAT amount and the gross total as separate lines. All four are shown in the result panel so they can be copied straight across.
How to use the VAT Calculator
Three steps, no sign-up.
Choose add or remove
Add VAT to a net figure, or work backwards from a gross price.
Enter the amount and rate
Common rates are one tap away; any rate can be typed.
Copy the three lines you need
Net, VAT and gross are all shown separately for invoices.