VAT Calculator
Calculate value added tax gross-to-net or net-to-gross at any rate.
About VAT Calculator
VAT (Value Added Tax) is charged as a percentage of the price at each stage of production and sale. From a consumer's view, the gross (tax-inclusive) price is what you pay; the net (tax-exclusive) price is what the seller keeps before remitting tax to the government. The two formulas are inverses: adding VAT multiplies by (1 + rate), while removing VAT divides by (1 + rate) — not by subtracting the percentage, which is a common mistake.
Formulas
Add VAT (tax-exclusive → tax-inclusive)
Gross = Net × (1 + VAT rate)
- r
- VAT rate as a decimal (e.g. 0.20 for 20%)
Remove VAT (tax-inclusive → tax-exclusive)
Net = Gross ÷ (1 + VAT rate)
- r
- VAT rate as a decimal
Worked example
With the default values below, VAT Calculator returns VAT Amount of $20.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Calculation Directionone of Add VAT (Net → Gross), Remove VAT (Gross → Net)
- Add VAT (Net → Gross)
- Amountminimum 0 $
- 100 $
- VAT / GST Rate (%)accepts 0–50
- 20
- Quantityminimum 1
- 1
Results
- Net Amount (ex-VAT)
- $100.00
- VAT Amount
- $20.00
- Gross Amount (inc-VAT)
- $120.00
- Total Net (all units)
- $100.00
- Total VAT (all units)
- $20.00
- Total Gross (all units)
- $120.00
- Effective VAT RateVAT amount ÷ net amount. Confirms the calculation is consistent.
- 20.0000%
Step by step
- 1Net price (before VAT)= $100.00
- 2VAT at 20%= $20.00
- 3Gross price (VAT-inclusive)= $120.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
- Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Guides that use this calculator
Frequently Asked Questions
Why can't I just subtract 20% from the gross price to get the net?
Because 20% of the gross is not the same as 20% of the net. If the net is £100 and VAT is 20%, the gross is £120. But 20% of £120 is £24, not £20. The correct removal formula divides by 1.20, giving £100.
What is the difference between VAT and GST?
They're essentially the same tax with different names. VAT (Value Added Tax) is the term used in the UK, EU, and many other countries. GST (Goods and Services Tax) is used in Australia, Canada, New Zealand, and Singapore, among others. The maths is identical.
What is the standard VAT rate in different countries?
Common rates: UK 20%, Germany/France 20%, Australia 10%, Canada 5% federal GST (provinces add more), New Zealand 15%, India 18% standard, UAE 5%. Rates vary by product category in many jurisdictions.
Can I use this for multiple different items?
For multiple items at the same rate, enter the total and use the quantity field. For items at different rates, calculate each line separately and sum them — most tax authorities allow mixing rates on a single invoice.
