VAT Calculator
Use this VAT calculator to add or remove VAT from any price at the UK standard, reduced or zero rate, or a custom rate.
Formula & worked example
Formula: Add: gross = net × (1 + rate ÷ 100). Remove: net = gross ÷ (1 + rate ÷ 100). VAT = gross − net.
Example: 250 + 20% VAT = 300 (VAT 50). Removing VAT from 84: 84 ÷ 1.2 = 70 net, VAT 14.
Method & source: GOV.UK: VAT rates (standard 20%, reduced 5%, zero 0%) and VAT thresholds. See how we test our calculators.
Next step: try reverse percentages or sale prices.
What Is a VAT Calculator?
A VAT calculator adds Value Added Tax to a price or takes it out of a price that already includes it. It answers the two questions every business and shopper meets: what is the total with VAT, and how much of this total is VAT?
This VAT calculator lets you add or remove VAT at the UK standard rate of 20%, the reduced rate of 5%, the zero rate, or any custom rate for other countries, and shows the net, VAT and gross amounts side by side.
How Our VAT Calculator Works
Choose whether you are adding or removing VAT, enter the amount and pick the rate.
- Add VAT: VAT = net price × rate; gross price = net + VAT.
- Remove VAT: net price = gross ÷ (1 + rate); VAT = gross − net.
- UK rates: standard 20%, reduced 5% and zero 0%, checked against GOV.UK.
- Custom rate: enter any percentage to use the tool for other countries’ VAT or sales taxes.
- Clear breakdown: net, VAT and gross are always shown together with the working.
Removing VAT is not the same as taking 20% off the total – the calculator divides by 1.2 for you, which is the step most people get wrong.
Why Getting VAT Right Matters
Small VAT mistakes are easy to make and costly when they repeat across many invoices or prices.
- Price products and services correctly, with and without VAT.
- Check invoices and receipts to see exactly how much VAT was charged.
- Work out the net price of something you bought, for expenses or accounts.
- Compare prices shown with and without VAT between suppliers.
- Understand when a business must charge VAT at all.
A quick add-or-remove VAT calculation keeps invoices, quotes and budgets accurate. For legal and accounting questions, always check with HMRC or a qualified accountant.
Worked walkthrough: adding and removing VAT
A freelancer quotes 250 excluding VAT. At the UK standard rate of 20%, VAT is 250 × 0.20 = 50, so the invoice total is 300. Going the other way, a receipt shows 84 including VAT. Dividing by 1.2 gives a net amount of 70, and the VAT content is 84 − 70 = 14. Subtracting 20% of 84 (16.80) would wrongly give 67.20. For the reduced rate of 5%, an item with a net price of 100 costs 105 in total, and 105 ÷ 1.05 takes you back to 100.
Practical tips for vat calculations
- Always check whether a price is quoted with or without VAT before you compare suppliers.
- To find the VAT inside a 20% gross price quickly, divide the gross amount by 6 (VAT is one sixth of the total at 20%).
- Zero-rated and exempt are not the same: zero-rated sales still count towards VAT-registration turnover, exempt sales usually do not.
- Keep VAT invoices: a business can normally reclaim VAT on purchases only with a valid VAT invoice.
- Rates and thresholds can change in a Budget. Check GOV.UK for the current rate before you rely on an old figure.
Frequently Asked Questions (FAQs)
Multiply the price excluding VAT by the VAT rate and add the result. At 20%, £100 plus £20 VAT is £120. Or multiply the price by 1.2.
Divide the VAT-inclusive price by 1 plus the rate. At 20%, £120 ÷ 1.2 = £100 net, of which £20 is VAT. Taking 20% off £120 would wrongly give £96.
The standard rate is 20%, the reduced rate is 5% for a limited list of goods and services, and the zero rate is 0%. Some supplies are exempt from VAT altogether. Rates were checked against GOV.UK.
When taxable turnover over the last 12 months goes over the registration threshold, which is £90,000 at the time of writing. You can also register voluntarily below it.
Yes. Choose “Custom rate” and enter the local rate. The maths of adding and removing a percentage tax is the same everywhere.
Estimate only – not tax advice. This tool applies the rate you choose to the amount you enter. Whether VAT applies, and at which rate, depends on what is being sold and on your circumstances. Check with HMRC or an accountant for legal or accounting decisions. See our full disclaimer.