VAT Calculator

Add or remove VAT using your chosen rate.

Enter your details and select Calculate.

This tool provides an estimate. Verify results before making financial, educational or medical decisions.

VAT-inclusive and VAT-exclusive prices

This guide explains how to use the calculator, includes an example, discusses limitations and answers common questions.

VAT is a tax on certain goods and services. Adding VAT to a net price is different from extracting VAT from a gross price.

How to use this calculator

To add VAT at rate r, gross = net × (1 + r). To remove VAT, net = gross ÷ (1 + r), where r is written as a decimal.

Worked example

At 20% VAT, £100 net becomes £120 gross. A £120 gross price includes £20 VAT, not £24.

When this calculator is useful

Useful for UK invoices, retail pricing, checking receipts and comparing VAT-inclusive and exclusive quotes.

When not to rely on it

Different supplies may be zero-rated, exempt or subject to other rates. VAT registration and recovery rules are separate from simple arithmetic.

Practical tip

Confirm the correct VAT treatment with HMRC guidance or an accountant before invoicing.

Frequently asked questions

Why can’t I subtract 20% from a VAT-inclusive price?

The VAT percentage applies to the net price, not the gross price.

Is every UK sale charged 20% VAT?

No. Zero rates, reduced rates and exemptions can apply.

Does this determine whether I must register for VAT?

No. Registration depends on separate legal rules and turnover thresholds.

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Educational information only. Results are estimates unless otherwise stated. Verify important financial, medical or legal decisions with a qualified professional.