VAT Calculator
Add or remove VAT from a price to find the net amount, VAT amount, or gross price.
About the VAT Calculator
Value-added tax is charged in most countries outside the US, and pricing conversations constantly move between "net" (before tax) and "gross" (after tax) amounts. This calculator handles both directions: adding VAT onto a net price, or extracting the net price and VAT amount from a tax-inclusive gross price.
How It Works
When adding VAT, the calculator multiplies your net amount by the VAT rate to find the tax, then adds it to get the gross price. When removing VAT from a gross price, it divides the gross amount by one plus the VAT rate to back out the net price, then finds the VAT amount as the difference — since simply multiplying the gross price by the rate would overstate the tax.
Adding: Gross = Net × (1 + rate). Removing: Net = Gross / (1 + rate); VAT = Gross − Net.
Example
Scenario: A $120 net amount with 20% VAT, adding tax.
Result: VAT of $24 added, for a gross price of $144.
Assumptions & Limitations
- Uses a single flat VAT rate applied to the full amount — some jurisdictions use reduced rates for specific goods.
- Assumes the amount entered does not already include any other taxes.
- VAT rates and rules vary by country and product category — confirm the applicable rate for your jurisdiction before relying on this for filing.
- Does not handle mixed-rate invoices with multiple line items at different VAT rates.