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VAT Calculator

Add Value Added Tax onto a net price, or strip it back out of a gross price, at any rate you like. Enter a figure and the VAT rate, then press Calculate to see the net, the tax and the gross.

Written by TopicDrill Editorial Team·Updated June 2026

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Your inputs

Choose a direction, enter the figures, then press Calculate.

$

Gross amount

$120.00

Net (before VAT)$100.00
VAT at 20%$20.00
Gross (incl. VAT)$120.00

How the price splits

Net VAT
$100$20Net priceVAT 20%Gross total: $120

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How the VAT calculator works

Value Added Tax is charged as a percentage of the price before tax. When you add VAT, the tool takes your net figure and multiplies it by one plus the rate to give the gross price the customer pays. When you remove VAT, it works in reverse, dividing the gross price by one plus the rate to recover the net amount that the tax was actually charged on.

The bar shows the split between the part of the price that belongs to the business, the net, and the part that belongs to the tax authority, the VAT. Removing VAT correctly matters because subtracting the rate from the gross gives a number that is slightly too small.

A quick example

Suppose a designer quotes a net fee of 100 dollars and the applicable VAT rate is 20 percent. Adding VAT gives 20 dollars of tax and a gross invoice of 120 dollars. Now imagine you only know the gross of 120 dollars and need the net for your records. Dividing 120 by 1.2 returns 100 dollars net and 20 dollars of VAT, the same split read from the other end.

Things to keep in mind

VAT rules, registration thresholds and rates vary by country, and some goods are exempt or zero rated. For an overview of how the tax works internationally, see the OECD consumption tax pages. If you need to work out a plain percentage rather than a tax-inclusive price, our percentage calculator is the quicker route.

Frequently asked questions

How do I add VAT to a net price?

Multiply the net price by one plus the VAT rate written as a decimal. For a 20 percent rate that means multiplying by 1.2, so a net price of 100 becomes a gross price of 120. The VAT portion is the difference, which is 20. This calculator does that for you when you choose the add VAT direction.

How do I remove VAT from a gross price?

Divide the gross price by one plus the VAT rate as a decimal. For a 20 percent rate you divide by 1.2, so a gross price of 120 gives a net price of 100 and a VAT amount of 20. A common mistake is to subtract 20 percent of the gross, which is wrong because the tax was charged on the smaller net figure, not the gross.

What is the difference between VAT and sales tax?

VAT is collected in stages along the supply chain, with each business charging tax on its sales and reclaiming the tax on its purchases, so only the value it adds is taxed. Sales tax, common in the United States, is charged once to the final consumer at the point of sale. The headline price math is similar, but the way the tax is administered differs.

Which VAT rate should I use?

Rates depend on the country and on the type of goods or services. Many countries apply a standard rate, a reduced rate for items like food or books, and a zero rate for exports. Enter whichever rate applies to your transaction. If you are unsure, check the current rate published by your national tax authority.

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