VAT Calculator

Value added tax is charged on the price of goods and services and is normally included in the price you see. Adding it is a multiplication; removing it is a division, and mixing the two up is the most common VAT error.

PriceEither the net price, or the gross price if you are removing VAT.VAT rate(%)Standard rate as a percentage.Direction (1 = add, 0 = remove)Use 1 to add VAT to a net price, 0 to extract it from a gross price.

Gross price

$240.00

Net price: $200.00
VAT amount: $40.00

Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.

The formula this calculator uses

Gross = net x (1 + rate)

net: Price before VAT
rate: VAT rate as a decimal, such as 0.20 for 20%
gross: Price including VAT
vat: The tax portion, gross minus net

How to check the result by hand

1
Identify the figure you have
If the price excludes VAT you are adding it; if it already includes VAT you are removing it. The two use different operations.
2
Convert the rate to a decimal
20% becomes 0.20 and 5% becomes 0.05.
3
Form the multiplier
Add one to the rate. The multiplier is 1.20 for 20% VAT and 1.05 for 5%.
4
Multiply or divide
Multiply a net price by the multiplier to get the gross, or divide a gross price to recover the net.
5
Find the VAT amount
Subtract the net from the gross. For 240 gross at 20% that is 240 minus 200, or 40 of VAT.

For worked examples, common mistakes and the limits of this formula, read the full How To Calculate VAT page.