Net price (to add) or gross price (to remove).
Applicable VAT percentage.
Add to a net price or extract from a gross price.
VAT Amount
$20.00
Net (excl. VAT)
$100.00
Gross (incl. VAT)
$120.00
Estimate only — not financial advice; lender terms, fees, and taxes vary. Read the full disclaimer ↓
How the amount you entered splits into the net price, the VAT, and the gross total, based on the rate and mode you chose.
| Component | Amount |
|---|---|
| Net (excl. VAT) | $100 |
| VAT (20%) | $20 |
| Gross (incl. VAT) | $120 |
In add mode the entered amount is treated as the net price and VAT is added on top.
$100 net price with 20% VAT (add mode).
Net
$100.00
VAT (20%)
$20.00
Gross
$120.00
Mode
Add VAT
Adding 20% VAT to a $100 net price gives $20 of tax and a $120 gross price the customer pays.
Value Added Tax is a consumption tax added to most goods and services in many countries. It is charged as a percentage of the price, and the final consumer ultimately bears it, even though businesses collect it along the way. This calculator helps whenever you need to move between a price with VAT and a price without it.
Two situations come up constantly. Sometimes you have a price before tax and want to know the final amount a customer pays; other times you have a tax-inclusive total and need to pull out the VAT, for instance to record it on an invoice or reclaim it. The add and remove modes handle both.
Adding VAT is the simple direction: multiply the net price by the rate to get the VAT amount, then add it to the net to get the gross. A $100 net price at 20% gains $20 of VAT for a $120 gross.
Removing VAT is where people slip up. You cannot just subtract the rate from the gross, because the VAT was calculated on the smaller net figure. Instead you divide the gross by one plus the rate to recover the net, then subtract to find the VAT. Dividing $120 by 1.20 returns the original $100 net and $20 of VAT.
The breakdown always shows three linked figures: the net price, the VAT amount, and the gross price. The net plus the VAT always equals the gross, so you can check the result at a glance.
Which figure matters depends on your task. Customers care about the gross, the price they actually pay. Businesses often care about the net, which is the revenue they keep, and the VAT, which they pass on to the tax authority.
The classic error is treating a gross price as if it were net, or vice versa, which throws off every figure. Before you calculate, be clear about whether your starting amount already includes VAT.
Another is subtracting the rate directly from a gross price to remove VAT, which always overstates the tax. Applying a single rate to an invoice that actually mixes standard and reduced rates is a third common slip.
When quoting prices, state clearly whether they include or exclude VAT, as this avoids disputes with customers and confusion in your own records. Many businesses show both the net and the VAT separately on invoices for exactly this reason.
If you handle goods at different VAT rates, calculate each line separately rather than applying one blended rate to the whole bill. Keeping net, VAT, and gross columns in your bookkeeping makes returns far easier.
This calculator applies one VAT rate to the whole amount and shows exact figures. Real-world VAT involves reduced and zero rates, exemptions, registration thresholds, and rounding rules that differ by country and sometimes by line item.
It is a general-purpose tool for quick conversions, not tax software or advice. For filing, reclaiming, or cross-border transactions, follow your local rules and confirm the treatment with an accountant or the tax authority.
Divide the gross price by 1 plus the VAT rate. For 20% VAT, divide by 1.20 to get the net price, then subtract the net from the gross to find the VAT included. The remove mode does this for you.
They are similar consumption taxes but collected differently. VAT is charged at each stage of production and supply, with businesses reclaiming what they paid, while sales tax is charged once at the final point of sale.
Use add mode when you have a price before tax (net) and want the final price. Use remove mode when you have a tax-inclusive price (gross) and need to know how much of it is VAT, for example to reclaim it.
Because the VAT was added to the net price, not the gross. Subtracting 20% of a gross price overstates the tax. You must divide by 1.20 first to recover the original net, which is what this tool does.
Yes. Many countries apply standard, reduced, and zero rates to different goods and services. This calculator applies a single rate to the whole amount, so handle mixed-rate invoices line by line.
For the consumer, the price already includes VAT. Businesses generally pay VAT on their sales but reclaim the VAT on their purchases, so they effectively remit tax only on the value they add.
No. Rounding conventions for VAT vary by country and even by invoice line. This tool shows precise figures, so a real invoice total may differ by a small rounding amount.
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Tax disclaimer
Tax rules vary by country, state, tax year, filing status, income type, deductions, and exemptions. This calculator is educational and uses the values you enter. Always verify final tax treatment with official sources or a qualified tax professional.
Built and maintained by Calculator Matters, an independent calculator project. Method checked against published formulas and primary sources · Last reviewed 3 June 2026 · How we calculate · Found an error? corrections@calculatormatters.com