VAT calculator — add or remove VAT at 20%, 5% or any rate

Type an amount, say whether it includes VAT, and pick a rate to see the net price, the VAT and the gross price — the UK's 20%, 5% and 0% rates are preset, and any other rate works too.

Live demo · real result from this tool
The amount
UK rates from GOV.UK. Choose Another rate for other countries (for example 19%, 21% or 23%).
Total including VAT£120.00
VAT
£20.00
Amount before VAT
£100.00
VAT rate
20%

Quick reference at this rate

NetVATGross
£10.00£2.00£12.00
£50.00£10.00£60.00
£100.00£20.00£120.00
£500.00£100.00£600.00
£1,000.00£200.00£1,200.00

To add VAT, multiply the net by 1.2. UK rates: 20% standard, 5% reduced (for example home energy and children's car seats), 0% zero rate (most food, children's clothes). Exempt items such as postage stamps carry no VAT at all.

Processed on your device — nothing is uploaded.

How to use the VAT calculator

  1. Type the Amount.
  2. Under The amount, choose Excludes VAT (add it) if it is a net price, or Includes VAT (remove it) if VAT is already in the price.
  3. Pick the VAT rate: 20%, 5% or 0%, or Another rate and type it in.
  4. Change the Currency if you are not working in pounds.
  5. Read the result, the VAT, and the quick-reference table of common amounts at your rate.

What it does and when to use it

VAT is added to most sales by VAT-registered businesses. Prices to consumers usually include it, while business quotes and invoices often show the net price and the VAT separately. Moving between the two by hand is where mistakes happen, especially when VAT has to come out of a price.

Use this calculator to:

  • add VAT to a quote, a wholesale price or a freelance invoice;
  • take VAT out of a receipt for a VAT return or an expense claim;
  • check that an invoice shows the right VAT;
  • compare a price “plus VAT” with one that includes it;
  • work with VAT or sales tax at other countries’ rates.

How it works

Adding VAT. Multiply the net price by (1 + rate). The VAT is net × rate.

gross = net × (1 + rate ÷ 100); VAT = net × rate ÷ 100

Removing VAT. Divide the gross price by (1 + rate). The VAT is the gross minus the net. This is the same as multiplying the gross by the “VAT fraction”, rate ÷ (100 + rate). At 20% that is 20/120 = 1/6, and at 5% it is 5/105 = 1/21.

net = gross ÷ (1 + rate ÷ 100); VAT = gross × rate ÷ (100 + rate)

The common error is to take the rate straight off the gross. VAT is a percentage of the net price, so taking 20% off a gross price takes off too much. When you remove VAT, the calculator shows how much that shortcut would understate the net price.

The UK rates preset in the calculator come from GOV.UK and were checked on 3 October 2026:

Rate % Examples from GOV.UK
Standard 20% Most goods and services
Reduced 5% Some goods and services, such as children’s car seats and home energy
Zero 0% Zero-rated goods and services, such as most food and children’s clothes

Worked examples

Adding 20% to £100. VAT = £100 × 0.2 = £20, so the gross is £120. This is the quick check most people know.

Removing 20% from £120. Net = £120 ÷ 1.2 = £100, and VAT = £20 (one-sixth of £120). Taking 20% off £120 would give £96 — £4 too low. The calculator flags that difference.

Removing 5% from £63. Net = £63 ÷ 1.05 = £60, and VAT = £3 (one twenty-first of £63). This is the kind of sum you need for a home-energy bill.

Adding 21% to €250. Choose Another rate, type 21 and switch to euros. VAT = €52.50, gross = €302.50.

The quick-reference table gives the VAT on £10, £50, £100, £500 and £1,000 net at your chosen rate. At 20%, £1,000 net is £1,200 gross and £500 net is £600 gross.

Limits and tips

  • The rate depends on what you sell. The same shop may sell standard-rated, reduced-rated and zero-rated items. Check HMRC’s guidance on rates for specific goods and services if you are unsure; this calculator does not decide which rate applies.
  • Exempt is not the same as zero-rated. Both add no VAT to the price, but they treat the seller’s costs differently.
  • Rounding. Results are rounded to the nearest penny. On invoices with many lines, VAT worked out line by line can differ by a penny or two from VAT on the total.
  • Registration. Only VAT-registered businesses charge VAT. This calculator does not cover registration thresholds, flat-rate schemes or reverse-charge rules.
  • Sales tax in other countries may be added at the till rather than shown in the price, and some countries have several layers (for example federal and state taxes). Enter the combined rate if you want a single figure.

Quick ways to check a VAT sum

  • At 20%, the VAT on a gross price is one-sixth of it. £60 including VAT holds £10 of VAT; £300 holds £50.
  • At 5%, the VAT on a gross price is one twenty-first. £21 including VAT holds £1 of VAT.
  • Net plus VAT must equal gross. If your figures do not add up to the penny, one of them has been rounded or worked out from the wrong base.
  • VAT on a discount. Apply the discount to the net price first, then add VAT. The result is the same as discounting the gross price by the same percentage.

VAT, GST and sales tax

Many countries call their VAT something else. In India it is GST, with rates of 5%, 18% and a special 40% rate since September 2025, split between central and state tax. Use the GST calculator for those. If you sell online, the Etsy, eBay and Stripe fee calculators show what you keep after platform fees, and the markup calculator helps you set a price that covers your costs before VAT is added. For discounts on VAT-inclusive prices, try the discount calculator.

Planning a purchase or a job move? The UK take-home pay calculator shows your salary after tax and National Insurance, and the UK Stamp Duty calculator shows the tax on buying a home in England or Northern Ireland.

Frequently asked questions

How do I remove 20% VAT from a price?
Divide the price by 1.2. The VAT is one-sixth of the gross price. For example, £120 including VAT is £100 net plus £20 VAT. Taking 20% off £120 would give £96, which is wrong, because the VAT was 20% of the net price, not of the gross.
How do I remove 5% VAT?
Divide by 1.05, or take one twenty-first of the gross as the VAT. £63 including 5% VAT is £60 net and £3 VAT.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. The reduced rate is 5%, for things like home energy and children's car seats. The zero rate is 0%, for most food and children's clothes. Some things, such as postage stamps and many financial services, are exempt from VAT altogether.
What is the difference between zero-rated and exempt?
Both mean no VAT is added to the price. A zero-rated sale is still a VATable sale at 0%, so the business can reclaim the VAT on its own costs. An exempt sale is outside VAT, so the business generally cannot reclaim VAT on related costs.
Can I use this for other countries?
Yes. Choose Another rate and type the rate — for example 19%, 21% or 23% for countries in the EU — and switch the currency. The maths of adding and removing VAT is the same everywhere.
Should I round VAT on every line or on the invoice total?
The two methods can differ by a penny or two on a long invoice. HMRC's VAT guidance (VAT Notice 700) sets out the rounding rules businesses must follow. This calculator works on the single amount you enter and rounds the result to the nearest penny.

Sources

  1. VAT rates — GOV.UK, accessed Sat Oct 03 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

Written by the ToolsRift team · Last updated · Figures last verified

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