VAT Calculator

Add VAT to a net price or extract VAT from a VAT-inclusive price. Enter an amount, a VAT rate, and the calculation direction to get the net amount, VAT amount, and gross amount.

Quick Facts

Add VAT
VAT = Net × (Rate ÷ 100)
Gross = Net + VAT. Use this when your starting figure excludes tax.
Remove VAT
Net = Gross ÷ (1 + Rate ÷ 100)
VAT = Gross − Net. Use this when your starting figure already includes tax.

Your Results

Calculated
Net amount
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Price excluding VAT
VAT amount
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Tax charged
Gross amount
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Price including VAT
VAT share of gross
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VAT as % of the total price

Ready

Enter an amount and VAT rate, choose a direction, then press Calculate.

How the VAT Calculator works

Value-added tax (VAT) is a consumption tax added at a flat percentage rate to the price of goods and services. This calculator does the two things people actually need: add VAT on top of a net (tax-exclusive) price, or work backward from a gross (tax-inclusive) price to see how much of it is tax. Both directions use the same two numbers — an amount and a VAT rate — just applied in opposite order.

Adding VAT to a net price

If your starting figure does not yet include tax, the VAT amount is a straight percentage of that net price:

VAT = Net × (Rate ÷ 100), and Gross = Net + VAT

Example: a net price of $100 at a 20% VAT rate gives VAT = $100 × 0.20 = $20, and a gross price of $120.

Removing VAT from a gross price

If your starting figure already includes tax, you cannot just multiply the gross price by the rate — that would tax the tax. Instead, divide by (1 + rate/100) first to recover the net price:

Net = Gross ÷ (1 + Rate ÷ 100), and VAT = Gross − Net

Example: a gross (VAT-inclusive) price of $120 at a 20% VAT rate gives Net = $120 ÷ 1.20 = $100, and VAT = $120 − $100 = $20 — the same split as above, worked in reverse.

Why order matters

A common error is computing VAT on a gross price as Gross × Rate directly. On the $120 example, 20% of $120 is $24 — not the $20 of VAT actually embedded in that price. The rate always applies to the net amount, so extracting VAT from a tax-inclusive figure requires dividing out (1 + rate/100) before applying the percentage.

Scope and limits

This calculator applies one flat rate to one amount, which matches most everyday invoicing and pricing checks. It does not model jurisdictions with multiple VAT bands (standard, reduced, zero-rated), exemptions, reverse-charge mechanisms, or cross-border rules — use the rate that applies to your specific transaction, and confirm unusual cases with a tax authority or accountant.

Frequently Asked Questions

How is VAT calculated?
To add VAT to a net (tax-exclusive) price: VAT = Net amount × (VAT rate ÷ 100), and Gross = Net + VAT. To extract VAT from a gross (tax-inclusive) price: Net = Gross ÷ (1 + VAT rate ÷ 100), and VAT = Gross − Net. This calculator performs whichever direction you select.
What is the difference between adding and removing VAT?
Adding VAT starts from a price that does not yet include tax and calculates how much tax to add on top. Removing VAT (also called back-calculating or extracting VAT) starts from a price that already includes tax and works out how much of that total is tax versus the underlying net price. Dividing a VAT-inclusive price by the rate directly, instead of by (1 + rate/100), is a common mistake that overstates the tax.
Why isn't VAT on a gross price just Gross × Rate?
Because the rate applies to the net price, not the gross price. If VAT is 20% on a net price of $100, the gross is $120 — but 20% of $120 is $24, not the $20 of VAT actually charged. Extracting VAT correctly requires dividing by (1 + rate/100) first to recover the net amount.
Does this handle multiple VAT rates or reverse charge rules?
No. This calculator applies one flat VAT rate to one amount. Real-world VAT systems often have standard, reduced, and zero rates for different goods and services, plus reverse-charge and cross-border rules. Use the applicable rate for your specific transaction and confirm exemptions with your local tax authority or an accountant.

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