VAT Calculator

The VAT calculator computes the tax both ways: it adds VAT to an amount without tax and extracts VAT from an amount that already includes it. Choose a mode, enter the amount and rate – the calculator instantly shows the net amount, the tax itself and the gross total. All calculations happen on your device.

What is VAT

VAT (value added tax) is an indirect tax paid by the end consumer. A business builds VAT into the price of a good or service, the customer pays it, and the seller remits it to the budget. In the UK the standard rate is 20% with a reduced 5% for some goods; other countries set their own rates – the calculator picks yours automatically from the country selector.

How to use the calculator

Choose a mode. «Add VAT» fits when you know the price without tax – for example, you are issuing an invoice and need VAT on top. «Extract VAT» is for when the amount already includes the tax – for example, you have a receipt and want to see the tax inside it. Then enter the amount and pick the rate. The result panel shows three figures: the amount without VAT, the VAT amount and the total with VAT.

VAT formula

Adding VAT: VAT = A × R ÷ 100, where A is the net amount and R is the rate in percent. Gross: G = A + VAT. Example: 1,000 at 20% → VAT 200, total 1,200. Extracting VAT from a gross amount: A = G ÷ (1 + R ÷ 100), VAT = G − A. Example: 1,200 at 20% → net 1,000, VAT 200. Note you cannot simply subtract 20% of the gross – the tax is computed from the net price, not the gross.

Calculated rates (20/120)

For extracting VAT from a gross amount, calculated rates are also used: VAT = G × R ÷ (100 + R). For a 20% rate the calculated rate is 20/120 ≈ 16.67%, for 10% it is 10/110 ≈ 9.09%. The result is identical (1,200 × 20 ÷ 120 = 200) – the fractional form is simply more convenient for some accounting operations. They are available in the rate list.

Input and output VAT for business

A company pays the budget not all the VAT it collects, but the difference between «output» VAT (charged on sales) and «input» VAT (paid to suppliers). Example: you sold 1,200 including 200 VAT, and bought materials for 600 including 100 VAT – 200 − 100 = 100 to pay. That is why entrepreneurs need to extract VAT from every invoice amount quickly.

This calculation is for information only and is not tax or legal advice. VAT rates and rules vary by country and change over time – check the current rules of your country for documents.

Frequently asked questions

How do I add VAT to an amount?
Multiply the net amount by the rate and divide by 100: VAT = A × R ÷ 100. Then add the tax to the original amount. Example: 500 at 20% → VAT 100, total 600. The calculator does this instantly in «Add VAT» mode.
How do I extract VAT from an amount?
Divide the gross amount by (1 + R ÷ 100) to get the net amount; the difference between the gross and the net is the VAT. Example: 1,200 ÷ 1.2 = 1,000 net, VAT 200. You cannot just subtract 20% – the tax is calculated from the base, not the total.
What is a calculated rate like 20/120?
It is a way to extract VAT from a gross amount: VAT = G × 20 ÷ 120. For a 20% rate this gives exactly the same result as dividing by 1.2 – 1,200 × 20/120 = 200. The fractional form is convenient for some bookkeeping entries, so it is offered in the rate list.
Why not just subtract 20% from the gross amount?
Because 20% is a share of the price WITHOUT tax, not with it. 20% of 1,200 is 240, but the actual VAT in that sum is 200. The correct formula is 1,200 ÷ 1.2 = 1,000 net, VAT = 200. This is the most common mistake when checking receipts.
Is VAT included in the shelf price or added on top?
For retail customers VAT is almost always included in the price – you pay the final amount with tax. In B2B quotes the price is often shown without VAT with the tax added as a separate invoice line. The calculator handles both: «Extract» for tax-inclusive prices, «Add» for tax-exclusive.
What are input and output VAT?
Output VAT is the tax a company charges its customers on sales. Input VAT is the tax the company itself paid to suppliers within purchase prices. The business remits the difference: output minus input. That is why it is important to be able to extract VAT from any invoice amount.

Updated: Oct 14, 2026

Related calculators

Currency Converter
Convert 55 currencies at official central bank rates: pick any date, track the pair over a week to a year, compare all currencies at once.
Discount Calculator
Calculate the sale price and your savings. Three modes: simple discount, price before the discount, and stacked discounts (why −20% and −10% make −28%).
Tip Calculator
Free tip calculator: work out the tip from your bill by percentage or enter the amount manually, see the total to pay and how much each person owes when splitting.
Fuel Cost Calculator
Calculate how much a car trip costs: fuel economy in mpg, distance in miles and gas price per gallon. Or see how many miles your budget buys instantly.
Inflation Calculator
Calculate how much past money is worth today and how much your savings will lose to inflation. Equivalent amounts by year and purchasing power.