Price before VAT
Price with VAT
$
%
Net price$100.00
VAT$20.00
Gross (with VAT)$120.00
The split
Net 83%VAT 17%

The formula

V=P⋅r100V = P \cdot \dfrac{r}{100}
P — net price (before VAT)
r — VAT rate as a percentage
V — VAT amount

How it works

VAT (value-added tax) is a percentage added to the price of most goods and services. Enter a net price to add VAT on top, or a gross price to strip the VAT back out — useful when a receipt only shows the total.

FAQ

How do I remove VAT from a gross price?

Switch to “Price with VAT” and enter the total. The calculator divides it by 1 plus the rate to recover the net price, then shows the VAT that was inside it.

What VAT rate should I use?

It depends on your country and the product. The UK standard rate is 20%, much of the EU sits between 19% and 25%, and reduced rates apply to some goods like food or books.

Related calculators
Sales Tax CalculatorDiscount CalculatorMargin Calculator

About the VAT calculator

This calculator adds value-added tax to a net price, or works backwards to remove it from a gross total. VAT is charged at each stage of production but ultimately paid by the final customer, appearing as a percentage on the price you see in shops. Because rates vary from country to country, a quick calculator is the easiest way to check a bill or work out what a price was before tax.

How to use it

First pick what you already know. With “Price before VAT” selected, type the net amount and the VAT rate to see the VAT and the gross total: a $100 item at 20% has $20 of VAT and costs $120. If you only have the final price, switch to “Price with VAT” — entering $120 at 20% recovers the $100 net price and the $20 of VAT. Change the currency to match where you are shopping or invoicing.

The formula

Adding VAT uses V=P⋅r100V = P \cdot \frac{r}{100}, where PP is the net price and rr is the rate as a percentage; the gross total is P(1+r100)P\left(1 + \frac{r}{100}\right). To remove VAT from a gross total GG, divide instead: the net price is G1+r/100\frac{G}{1 + r/100} and the VAT is what is left over. This is why you cannot just subtract the percentage from the total — the percentage was taken of the smaller net figure, not the gross one.

Where it is used

Businesses use it to set prices, issue invoices and file VAT returns, while shoppers use it to check receipts and compare prices across regions. Freelancers add VAT to their fees, importers work it into landed costs, and accountants rely on the reverse calculation to split a gross total into net and tax. The same maths powers sales tax and GST systems around the world, just under a different name.