VAT runs both directions
Sometimes you have a price before tax and need the total. Sometimes you’ve got a receipt total and need to know how much of it was VAT. These are different sums, and mixing them up is the single most common VAT mistake. This calculator does both, you just flip the toggle for which way you’re going.
Pick “Add VAT” when your starting number is the net (pre-tax) price. Pick “Remove VAT” when your number already includes the tax. Either way you get all three figures at once: net, the VAT amount, and gross. There’s a row of preset rates too, tap one instead of typing.
The math, both ways
Adding VAT is the easy direction:
Gross = net x (1 + rate / 100)
So 100 net at 20% becomes 120 gross, with 20 of VAT.
Removing VAT is where people slip. You can’t just take the rate off the total, because the rate was applied to the net, not the gross. The correct move is to divide:
Net = gross / (1 + rate / 100)
A 120 gross at 20% gives 100 net and 20 VAT. If you’d lazily taken “20% of 120” you’d have gotten 24, which is wrong by four. The bigger the rate, the bigger that error. Both directions share the same last step: VAT = gross - net.
About the presets
The four quick buttons cover rates you’ll bump into often:
- 20% is the UK standard rate and a common EU figure.
- 19% is Germany’s standard rate (and several other EU countries sit nearby).
- 7.7% is Switzerland’s standard rate, low by European standards.
- 5% stands in for the many reduced rates, used across the EU and UK for things like home energy, kids’ car seats, and some food.
These are just shortcuts. If your country or product category uses a different rate, type it in directly, the calculator takes any number.
When you’d reach for this
Freelancers and small businesses use it constantly: quoting a client the gross price, or backing out the VAT on a purchase for a return. Anyone doing expenses needs the net figure off a tax-inclusive receipt. Shoppers comparing a quoted “ex VAT” price to an “inc VAT” one just want to know what they’ll actually pay. And if you sell across borders, you’ll be switching rates a lot, which is what the presets are for.
It’s currency-agnostic on purpose. Pounds, euros, francs, dollars, the arithmetic is identical, so the tool just shows numbers and lets you bring your own currency.
Common questions
What’s the difference between net and gross?
Net is the price before VAT. Gross is the price with VAT included. VAT is the slice in between.
Why can’t I just subtract the rate to remove VAT?
Because the rate was charged on the net price, not the gross total. Subtracting it from the gross overshoots. You have to divide by (1 + rate/100) instead.
Is VAT the same as sales tax or GST?
Mathematically, for this calculation, yes. VAT (Europe), GST (Canada, Australia, India), and US sales tax all use the same add/remove arithmetic. Just enter your local rate.
Does it work for reduced or zero rates?
Yep. Type any rate you like, including 0 (which leaves the amount unchanged) or a reduced rate like 5%. The presets are just the common ones.
Which currency does it use?
Whichever you’re thinking in. The tool only does the math and formats to two decimals, so the numbers work for any currency.