VAT Calculator
Value added tax (VAT) is a consumption tax included in the price of most goods and services in more than 170 countries. Enter an amount and rate to add or remove it.
Enter your figures below. Results update as you type.
Gross amount (with VAT)120
- Net 83%
- VAT 17%
- VAT
- 20
- Net
- 100
- Gross
- 120
How the VAT calculation works
Gross = net x (1 + VAT rate / 100); net = gross / (1 + VAT rate / 100)
To remove 20% VAT, divide the gross price by 1.2. Subtracting 20% of the gross price is a common mistake and gives the wrong net figure.
Frequently asked questions
How do I calculate VAT?
Multiply the price before VAT by the VAT rate. At 20%, an item priced at 100 has 20 of VAT, making 120 in total. To add VAT in one step, multiply by 1.2.
How do I work out the VAT from a total?
Divide the total by 1 plus the VAT rate to find the price before VAT. At 20%, a total of 120 divided by 1.2 is 100, so the VAT is 20. A shortcut at 20%: the VAT is the total divided by 6.
What is the difference between VAT and sales tax?
Sales tax is charged once, at the final sale to the customer. VAT is collected at each stage of production and distribution, with businesses reclaiming the VAT they have paid, so the final customer bears the cost.
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