VAT Calculator: Add or Remove VAT

What this VAT calculator does

This VAT calculator works in both directions. It can add VAT to a net price to get the gross price, or extract the VAT from a price that already includes it. Enter an amount and a rate, and the calculator shows three values: the amount excluding tax, the VAT amount, and the amount including tax. It works with any rate, so you can use it for VAT, GST or a similar sales tax in any country.

It is for freelancers writing quotes and invoices, small business owners checking supplier bills, online sellers setting prices, accountants doing quick checks, and shoppers who want to know how much tax is inside a price.

How to use the VAT calculator

1. Enter the Amount. Thousands separators are added automatically as you type.
2. Enter the VAT (%) rate. The default is 10; change it to the rate that applies to you.
3. Choose the mode:
   • Amount excluding VAT (add VAT) – your amount is the net price and you want to add tax.
   • Amount including VAT (extract VAT) – your amount already includes tax and you want to split it out. This is selected by default.
4. Click Calculate.
5. Read the results: amount excluding tax, VAT %, and amount including tax.

The formulas

Adding VAT

• VAT = net × rate ÷ 100
• Gross = net + VAT, which is the same as net × (1 + rate ÷ 100)

Example: a net price of 1,000 at 10% VAT gives VAT of 100 and a gross price of 1,100.

Extracting VAT

• Net = gross ÷ (1 + rate ÷ 100)
• VAT = gross − net

Example: a gross price of 120 at 20% VAT contains a net price of 100 and VAT of 20.

The most common mistake

To remove VAT from a gross price, you cannot simply subtract the rate as a percentage of the gross amount. Taking 20% off 120 gives 96, which is wrong. The VAT is 20% of the net price, not of the gross price, so you must divide by 1.20 to get back to 100.

Common use cases

• Preparing a quote or invoice where you know your net price and need the total to charge.
• Checking that a supplier invoice shows the correct VAT amount.
• Finding the net revenue from a VAT-inclusive retail price.
• Comparing prices from sellers who show prices with and without tax.
• Estimating how a change in the VAT rate would affect your prices.

VAT rates differ by country and product

VAT rates are set by each country, and many countries use more than one rate: a standard rate plus reduced rates for items such as food, books or transport. For example, the standard VAT rate is 20% in the United Kingdom and 19% in Germany. Rates and rules change from time to time, so always confirm the rate that applies to your product and location with your tax authority or accountant before you issue invoices.

Tips and common mistakes

• Pick the right mode. Using "add VAT" on a price that already includes VAT charges tax twice.
• Check rounding rules. Tax authorities have their own rules for rounding VAT on invoices, per line or per invoice. Use this calculator for quick checks, and follow your accounting software and local rules for final figures.
• Know whether you must charge VAT at all. Registration thresholds, exemptions, reverse-charge rules for business-to-business services and special schemes vary by country.
• VAT, GST and sales tax are not identical. The arithmetic is the same, but who pays, when it is charged and what can be reclaimed differ. US sales tax, for example, is usually added at checkout rather than included in shelf prices.

Frequently asked questions

How do I calculate VAT from a total that includes VAT?

Divide the total by (1 + rate ÷ 100) to get the net amount, then subtract the net from the total to get the VAT. Select "Amount including VAT (extract VAT)" and the calculator does this for you.

How do I add VAT to a price?

Multiply the net price by (1 + rate ÷ 100). For 10% VAT, multiply by 1.10; for 20%, multiply by 1.20.

Why isn't the VAT in a gross price equal to rate × gross?

Because VAT is calculated on the net price. The VAT share of a gross price is rate ÷ (100 + rate): at 20%, VAT is one sixth of the gross price, not one fifth.

Can I use this for GST or sales tax?

Yes. The calculation is the same for any percentage-based tax. Just enter the right rate.

What is the difference between net and gross?

Net is the amount before tax; gross is the amount including tax.

Does this calculator know my country's VAT rate?

No. You enter the rate yourself, which keeps the tool usable everywhere. Confirm the current rate for your product with your local tax authority.

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