Finance Calculators

VAT Calculator

Our free VAT calculator lets you quickly add VAT to a price or extract VAT from a VAT-inclusive amount. Works with any VAT rate.

Calculator

VAT Calculator

Sample inputs

Formula explanation

How this calculator works

Core formula

add VAT: gross = net * (1 + rate); remove VAT: net = gross / (1 + rate)

The calculator works in both directions: it can apply tax to a net amount or extract the tax portion from a tax-inclusive price.

  • VAT amount is always the difference between gross and net.
  • The same rate can produce different tax amounts depending on whether you start from net or gross input.

Learn more

VAT Calculator - Practical Guide and Formula Notes

Add or remove VAT from any price instantly.

How to Use the VAT Calculator

Our free VAT calculator lets you quickly add VAT to a price or extract VAT from a VAT-inclusive amount. Works with any VAT rate. The calculator is designed to give a fast answer, but the quality of the answer still depends on accurate inputs and a clear idea of what decision you are trying to support.

  1. Enter Amount, VAT Rate, and Calculation Mode using the same units you plan to compare or report.
  2. Read the main vat amount first, then use the supporting outputs to understand the trade-offs behind that result.
  3. Compare your numbers with the worked examples below if you want a quick reasonableness check.

What Your Result Means

The output separates the net amount, VAT amount, and gross amount so you can see the tax component clearly instead of treating the final price as a black box. On this page, the primary output is vat amount.

Scenario 1: Add 20% VAT to £100. Inputs used: amount: 100, rate: 20, mode: add. Example result: £20 VAT (£120 total). Adding 20% VAT to £100 gives a VAT amount of £20 and a total price of £120. Scenario 2: Remove 20% VAT from £120. Inputs used: amount: 120, rate: 20, mode: remove. Example result: £20 VAT (£100 net). Removing 20% VAT from £120 gives a net price of £100 with £20 VAT.

Formula and Assumptions

Core formula: add VAT: gross = net * (1 + rate); remove VAT: net = gross / (1 + rate). The calculator works in both directions: it can apply tax to a net amount or extract the tax portion from a tax-inclusive price.

  1. VAT amount is always the difference between gross and net.
  2. The same rate can produce different tax amounts depending on whether you start from net or gross input.

When to Use This VAT Calculator

Use this calculator when pricing invoices, checking receipts, or moving between tax-exclusive and tax-inclusive amounts. Related paths for follow-up analysis include percentage calculator, roi calculator, and profit margin calculator.

Common Mistakes to Avoid

Most bad outputs come from a few repeated input errors or interpretation mistakes. Use this short checklist before relying on the result.

  1. Applying VAT twice when the source amount already includes tax.
  2. Using the wrong regional rate for the transaction.
  3. Confusing sales tax workflows with VAT-inclusive pricing logic.

Examples

Real scenarios you can copy

Add 20% VAT to £100

Result: £20 VAT (£120 total)

Adding 20% VAT to £100 gives a VAT amount of £20 and a total price of £120.

Remove 20% VAT from £120

Result: £20 VAT (£100 net)

Removing 20% VAT from £120 gives a net price of £100 with £20 VAT.

FAQ

Key questions answered

How do I add VAT to a price?

To add VAT: multiply the net price by (1 + VAT rate/100). For example, £100 + 20% VAT = £120.

How do I remove VAT from a VAT-inclusive price?

To extract VAT: divide the gross price by (1 + VAT rate/100). For example, £120 ÷ 1.20 = £100 net price.

What are common VAT rates?

Common rates include: UK 20%, EU average ~21%, Australia 10% (GST), Canada 5% (GST). Always check your local tax authority for current rates.

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