Free VAT Calculator
Add or reverse Value Added Tax from net or gross price.
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Inputs
Result
Gross (with VAT)
$120.00
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Estimates only. Verify with a professional for consequential decisions.
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Short answer
VAT works multiplicatively. Add: gross = net · (1 + VAT%). Reverse: net = gross ÷ (1 + VAT%).
What is the VAT Calculator?
VAT (or GST) is a consumption tax charged as a percentage of price at each stage of production. This calculator handles both directions.
How does the VAT Calculator work?
Multiply net by (1 + rate) to add VAT. Divide gross by (1 + rate) to extract net.
Formula
Variables
netPrice before VATgrossPrice including VATrVAT rate (decimal)
Explanation
Never subtract the VAT rate from a gross figure — divide instead.
Examples
Example 1: £100 net at 20%
Gross £120, VAT £20.
Example 2: £120 gross at 20%
Net £100, VAT £20.
Applications
- UK & EU B2C pricing
- Invoicing
- Cross-border quotes
Advantages
- Symmetric — works both directions
Limitations
- Assumes one rate; multi-rate goods must be split first
Common mistakes
- Computing 20% of the gross to 'remove VAT'
Tips
- UK standard rate is 20%; reduced rate 5%; zero-rated 0%
Related concepts
The VAT Calculator sits inside the Finance Calculators hub, in the business & accounting cluster. Unit economics, margins and company metrics. Understanding the terms below makes the output easier to interpret and easier to compare against neighbouring measures.
Practical use cases and industry applications
Understanding VAT
VAT (or GST) is a consumption tax charged as a percentage of price at each stage of production. This calculator handles both directions. Within finance calculators, vat belongs to the business & accounting cluster, where it shares terminology and assumptions with closely related tools.
Learning how vat is calculated
Never subtract the VAT rate from a gross figure — divide instead. Working through the variables one at a time — net, gross, r — makes the result reproducible by hand and easier to sanity-check.
Using vat to make a decision
UK & EU B2C pricing Invoicing Cross-border quotes Because outputs depend on the assumptions you enter, run more than one scenario before committing to a figure.
How vat compares with related measures
contribution margin, fixed cost, variable cost, runway all describe adjacent aspects of business & accounting. Comparing this calculator's output against those measures — using the related tools listed on this page — prevents a single metric from being read in isolation.
Frequently asked questions
Same as sales tax?
Structurally identical for the consumer. The collection mechanism differs — VAT is charged at each production stage, sales tax only at final sale.
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