How to use the VAT calculator
- Type the Amount.
- 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.
- Pick the VAT rate: 20%, 5% or 0%, or Another rate and type it in.
- Change the Currency if you are not working in pounds.
- 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.
Related UK calculators
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?
How do I remove 5% VAT?
What are the UK VAT rates?
What is the difference between zero-rated and exempt?
Can I use this for other countries?
Should I round VAT on every line or on the invoice total?
Sources
- VAT rates — GOV.UK, accessed Sat Oct 03 2026 00:00:00 GMT+0000 (Coordinated Universal Time)
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