VAT Calculator
Add or remove VAT and see net, tax and gross amounts.
Overview
The VAT Calculator adds value-added tax to a net price or strips it out of a gross price, depending on which direction you need. Enter any two of net, VAT rate and gross and the calculator works out the missing piece plus the tax amount itself.
It is built for small-business owners pricing invoices, shoppers checking receipt totals, freelancers quoting in EU markets where VAT is the norm and accountants doing quick reconciliations. Trying to do gross / 1.20 * 0.20 in your head is asking for a rounding mistake.
How it works
If net is the pre-tax price and r is the VAT rate (as a decimal), then gross = net * (1 + r) and vat_amount = net * r. Going the other way, net = gross / (1 + r) and vat_amount = gross - net.
Common UK and EU rates are 20%, 19%, 15%, 10% and 5%, depending on country and product category. The calculator lets you pick any rate — useful for places with multiple VAT bands or for back-calculating an unusual rate.
Examples
Net £100, VAT 20% → VAT £20, Gross £120
Gross €119, VAT 19% → Net €100, VAT €19
Net $50, VAT 7.5% → VAT $3.75, Gross $53.75
Gross £150, VAT 5% → Net ≈ £142.86, VAT ≈ £7.14
FAQ
Is VAT the same as sales tax?
Conceptually similar — both are consumption taxes — but VAT is collected at every stage of production while US sales tax is collected only at final retail. From a calculator standpoint they work the same.
What if the rate is zero?
The net and gross prices are equal and the VAT amount is zero. Useful for zero-rated goods.
How do I handle multiple items at different rates?
Calculate each line item separately, then sum the net, VAT and gross amounts. This calculator works one line at a time.
Does it handle reverse-charge VAT?
The arithmetic is the same — VAT is computed on the net amount; reverse-charge just shifts who reports it. For accounting purposes, consult a tax advisor.
Why is the net amount sometimes pence-fractional?
When you start from a round gross and divide by (1 + r), the net can come out to fractions. Round consistently in your invoice software to avoid one-penny mismatches.