/ Finance

VAT Calculator

Add or back out tax instantly.

To add VAT, multiply the net price by one plus the rate; to remove it, divide the gross price by one plus the rate. The formula is gross = net x (1 + rate). At the UK standard rate of 20%, a 100 net price becomes 120 gross, and 20 of that is tax. Enter any of the three fields below and the other two update as you type.

How it's calculated

Two directions, one formula:

  • Add VAT: gross = net x (1 + rate), tax = gross - net
  • Remove VAT: net = gross / (1 + rate), tax = gross - net

Worked examples

Net VAT (20%) Gross
£100.00 £20.00 £120.00
£500.00 £100.00 £600.00
£1,000.00 £200.00 £1,200.00

Why it matters

Finance doesn't have to be complicated. Whether you're a freelancer backing VAT out of a project fee or a founder checking a supplier quote, you need accurate numbers fast.

Most calculators bury this simple utility behind ads or complex forms. This one is built to be your daily driver: open it, type, copy, close.

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Questions people ask

How do I add VAT?

Multiply the net price by one plus the VAT rate. At 20% you multiply by 1.20, so a 100 net price becomes 120 gross and the 20 difference is the VAT. For the reduced 5% rate you multiply by 1.05 instead.

How do I remove VAT from a price?

Divide the gross (VAT-inclusive) price by one plus the rate. At 20% you divide by 1.20: a 120 gross price is 100 net, which leaves 20 of VAT. Do not simply subtract 20% of the gross, because that gives a net figure that is too low.

What is the VAT rate in the UK?

The UK standard rate is 20% and applies to most goods and services. A reduced rate of 5% covers things like domestic energy and children's car seats, and some items such as most food and children's clothing are zero-rated at 0%.