OneTaskBy Tim King · Updated
VAT Calculator
Remove VAT From a Price or Add It On
OneTask is free, with no sign-up, and built by one person.
If this tool saved you time, a coffee helps keep new ones coming.
How the VAT Calculator works
To remove VAT from a price, divide it by 1 plus the rate: at a 20% rate, 120 ÷ 1.2 is 100 net and 20 VAT. This VAT calculator works in both directions. Enter a price, type in the VAT rate that applies, and choose whether to remove VAT from a total or add it to a net price. You get the net figure, the VAT amount and the gross at once.
How the VAT calculator removes VAT
To take VAT out of a total, divide by one plus the rate as a decimal. At a 20% rate that means dividing by 1.2, so a £120 total holds £100 net and £20 VAT. Subtracting 20% from £120 gives £96, which is wrong, because the rate was charged on the smaller net price, not on the total.
Adding VAT to a price
To add VAT, multiply the net price by one plus the rate. A £100 price at 20% becomes £120. The VAT share of the gross is always smaller than the headline rate: at 20% it is one sixth of the total, or 16.67%.
Which rate to enter
Rates differ by country and by what is being sold, and governments change them, so this tool has no built-in rates. Check the current standard, reduced or zero rate with your tax authority and type it in. An invoice with lines at different rates has to be split line by line.
VAT formula and worked examples
The formula to remove VAT is net = gross ÷ (1 + rate ÷ 100), and to add it, gross = net × (1 + rate ÷ 100).
Worked example 1: a £120 total at a 20% rate. 120 ÷ 1.2 = £100 net, so the VAT is £20.
Worked example 2: adding a 5% rate to an £80 net price. 80 × 1.05 = £84 gross, with £4 of VAT.
To see how many pence in each pound of a total are VAT, use the last column of the table.
Multipliers and VAT share of the gross for rates from 1% to 25%.
| VAT rate | Multiply net by | Divide gross by | VAT share of gross |
|---|---|---|---|
| 1% | 1.01 | 1.01 | 0.99% |
| 2% | 1.02 | 1.02 | 1.96% |
| 3% | 1.03 | 1.03 | 2.91% |
| 4% | 1.04 | 1.04 | 3.85% |
| 5% | 1.05 | 1.05 | 4.76% |
| 6% | 1.06 | 1.06 | 5.66% |
| 7% | 1.07 | 1.07 | 6.54% |
| 8% | 1.08 | 1.08 | 7.41% |
| 9% | 1.09 | 1.09 | 8.26% |
| 10% | 1.10 | 1.10 | 9.09% |
| 11% | 1.11 | 1.11 | 9.91% |
| 12% | 1.12 | 1.12 | 10.71% |
| 13% | 1.13 | 1.13 | 11.50% |
| 14% | 1.14 | 1.14 | 12.28% |
| 15% | 1.15 | 1.15 | 13.04% |
| 16% | 1.16 | 1.16 | 13.79% |
| 17% | 1.17 | 1.17 | 14.53% |
| 18% | 1.18 | 1.18 | 15.25% |
| 19% | 1.19 | 1.19 | 15.97% |
| 20% | 1.20 | 1.20 | 16.67% |
| 21% | 1.21 | 1.21 | 17.36% |
| 22% | 1.22 | 1.22 | 18.03% |
| 23% | 1.23 | 1.23 | 18.70% |
| 24% | 1.24 | 1.24 | 19.35% |
| 25% | 1.25 | 1.25 | 20.00% |
FAQ
How do I remove VAT from a price?
Divide the price by one plus the VAT rate as a decimal. For a 20% rate divide by 1.2, and for a 5% rate divide by 1.05. The difference between the total and the result is the VAT included in the price.
Why is removing 20% not the same as removing VAT?
VAT is charged on the net price, so it makes up a smaller share of the total than the rate. Taking 20% off a total that includes 20% VAT removes too much and understates the net price.
Does the calculator know my country's VAT rate?
No. Rates vary by country and product and change over time, so you enter the rate yourself. Check the current rate with your tax authority or on your supplier's invoice before relying on the result.
See also: all Loans & Savings tools, Everyday Maths, Dates & Time, Health, Home & DIY, Unit Converters, Education, Science, Creative, Garden & Farm, Gaming & PC, Work & Business, Fun, Maps & GPS, DIY & Building, Cost Estimators, Sport & Clubs.
Related tools
Profit Margin Calculator
Gross margin from cost and price, or the price for a target margin.
Markup Calculator
Sale price from cost and markup, with the matching margin.
Double Discount Calculator
What two stacked discounts really come to at the checkout.
Late Payment Interest Calculator
Daily interest on an overdue invoice, plus the recovery charge.
Car Affordability Calculator
The car price your income supports, with loan and deposit.