VAT Calculator
Add VAT to a price or take it back out of a VAT-inclusive one, at whatever rate you set.
What this calculates
VAT is a tax added to the price of most goods and services. The price before the tax is the net figure, the price a customer pays is the gross figure, and the difference is the VAT itself. Going up is easy — multiply the net price by the rate and add it on. Going back down is where people trip: the gross price already contains the tax, so you divide rather than subtract. The rate is yours to set, because it varies by country and often by what is being sold; the calculator starts at 20% only because it is a common standard rate, not because it is yours.
Formula
adding VAT gross = net × (1 + rate ÷ 100) removing VAT net = gross ÷ (1 + rate ÷ 100) VAT amount vat = gross − net
Example
Adding 20% to 100 gives 20 of VAT and a gross price of 120. Going the other way, 120 including 20% VAT divides by 1.20 to give a net price of 100 and 20 of VAT — the same two numbers, read from the other end.
Frequently asked questions
Why is removing 20% VAT not the same as subtracting 20%?
Because the 20% was worked out on the smaller, net price — not on the gross price you are holding. Take 120 including VAT: subtracting 20% of 120 gives 96, which is wrong. The VAT was 20% of 100, so dividing 120 by 1.20 gives the true net price of 100 and 20 of VAT. Subtracting always leaves you short, and the higher the rate the bigger the error.
Which VAT rate should I use?
Whichever applies where you trade and to what you sell. Standard rates across Europe sit roughly between 17% and 27%, and most countries also have reduced rates for things like food, books, energy or transport. The calculator does not assume a country — type your rate in.
What is the difference between net and gross?
Net is the price before VAT — the part that is your income. Gross is what the customer actually pays. The VAT in between is collected on the tax office's behalf and passed on, so it never belonged to the business.
Do I include VAT when working out my profit margin?
No. Use net figures for both cost and selling price. Including VAT would inflate the price side with money that is not yours, and make every margin look better than it is.