VAT Calculator
$
20.00%
VAT Amount$20.00
Net Amount$100.00
Gross Amount$120.00
Value-added tax is built into prices in much of the world, so you sometimes need to add VAT to a net price and other times strip it out of a gross price. This calculator handles both directions. In exclusive mode it adds the VAT rate to your amount; in inclusive mode it works backward from a VAT-inclusive total to reveal the net price and the tax already contained in it.
Formula
Exclusive: VAT = net × rate/100, gross = net + VAT. Inclusive: net = gross ÷ (1 + rate/100), VAT = gross − net
- net
- Price before VAT
- gross
- Price including VAT
- rate
- VAT rate as a percentage
- VAT
- The value-added tax amount
How it works
- Enter the amount, the VAT rate as a percentage (for example 20), and choose a mode: exclusive (the amount has no VAT yet) or inclusive (the amount already contains VAT).
- In exclusive mode the VAT is amount × rate ÷ 100 and the gross is the amount plus that VAT.
- In inclusive mode the net is amount ÷ (1 + rate ÷ 100) and the VAT is the amount minus that net, so the gross stays equal to your entry.
Worked example
A £120 price that already includes 20% VAT (inclusive mode), and the reverse case of a £100 net price.
- Inclusive: net = 120 ÷ (1 + 20 ÷ 100) = 120 ÷ 1.20 = £100; VAT = 120 − 100 = £20.
- Exclusive check: starting from £100 net, VAT = 100 × 20 ÷ 100 = £20 and gross = 100 + 20 = £120.
- Both directions reconcile: net £100, VAT £20, gross £120.
For a £120 VAT-inclusive price at 20%, the net is £100 and the VAT is £20.
Frequently asked questions
- When should I use inclusive versus exclusive mode?
- Use inclusive mode when the price already contains VAT and you need to find the underlying net and the tax, such as on a consumer receipt. Use exclusive mode when you have a net figure and want to add VAT to reach the final price.
- What VAT rate should I enter?
- Enter the rate that applies in your country and to that product or service. Standard rates differ widely (for example 20% in the UK, 19% in Germany), and many goods qualify for reduced or zero rates, so confirm the correct rate first.
- How is VAT different from US sales tax?
- VAT is charged at every stage of production and distribution, with businesses reclaiming the VAT they pay on inputs, and it is usually shown in the shelf price. US sales tax is levied only at the final retail sale and added on top at checkout.