VAT Calculator
This free VAT calculator does the two things invoices and receipts constantly demand: add VAT to a net price, and take a VAT-inclusive gross amount apart to see the net and the tax inside it.
How to use
- Choose the mode: add VAT to a net price, or remove VAT from a gross amount.
- Enter the price and the VAT rate (20% by default, editable).
- Read the VAT amount, the net and the gross — instantly, on your device.
Frequently asked questions
How is VAT added to a net price?
VAT = net × rate ÷ 100, and gross = net + VAT. Example: a 200 net price at the default 20% rate carries 40.00 of VAT for a 240.00 gross.
How is VAT extracted from a gross amount?
The VAT inside a gross amount is gross × rate/(1 + rate). At 20%, a 240 gross contains exactly 40.00 of VAT on a 200.00 net. Multiplying 240 by 20% would wrongly give 48.00 — the rate applies to the net, not to the gross.
Why does the rate default to 20%?
20% is the standard VAT rate in the UK and matches the standard rate in several other countries, so it is the most useful default. It is fully editable: enter 5%, 7%, 21% or any reduced or local rate your invoice uses.
What is the difference between VAT and sales tax?
Economically both are percentage-based consumption taxes, but VAT is collected at every production stage and quoted tax-inclusive in most price displays, while US-style sales tax is added only at the final sale. The arithmetic for splitting a tax-inclusive amount is identical — see the sales tax calculator for the US-flavoured version.
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About this tool
This free VAT calculator does the two things invoices and receipts constantly demand: add VAT to a net price, and take a VAT-inclusive gross amount apart to see the net and the tax inside it. The rate defaults to 20% — the standard rate used in the UK and several other countries — and you can change it to any value, so reduced rates, zero rates and other jurisdictions are all one edit away. Forward mode applies the straightforward formula VAT = net × rate ÷ 100, so a 200 net price at 20% carries 40.00 of VAT for a 240.00 gross. Reverse mode uses the tax-out-of-total split VAT = gross × rate/(1 + rate): a 240 gross at 20% contains exactly 40.00 of VAT on a 200.00 net, a number that multiplying the gross by 20% would get wrong. That split is the one accountants actually use when reclaiming input tax from gross receipts. Type your numbers and everything recalculates live, entirely in your browser with nothing uploaded. Scope note: the tool is pure arithmetic for invoicing and expense checking — it does not determine which rate applies to your goods or services.