VAT Calculator
Use this VAT calculator to add or remove VAT from any price at the UK standard (20%), reduced (5%) or zero rate, or a custom rate. Enter a price below to see the net, VAT and gross amounts straight away.
Quick answer: To add VAT, multiply the net price by 1.2 for the UK standard rate of 20%. To remove VAT, divide the gross price by 1.2. For example, £120.00 including VAT is £100.00 before VAT, and the VAT itself is £20.00. Choose the 5% reduced rate, the 0% rate or a custom rate in the calculator.
How do you use the VAT Calculator?
- Choose add or remove VAT. Select whether the price you have already includes VAT.
- Enter the price and rate. Type the amount and pick 20%, 5%, 0% or a custom VAT rate.
- Read the breakdown. See the net amount, the VAT and the gross total, ready to copy into an invoice or quote.
What is the formula, and what does a worked example look like?
Formula: Add: gross = net × (1 + rate ÷ 100). Remove: net = gross ÷ (1 + rate ÷ 100). VAT = gross − net.
Example: 250 + 20% VAT = 300 (VAT 50). Removing VAT from 84: 84 ÷ 1.2 = 70 net, VAT 14.
Method & source: GOV.UK: VAT rates (standard 20%, reduced 5%, zero 0%) and VAT thresholds. See how we test our calculators.
Next step: try reverse percentages or sale prices.
Worked examples for the VAT Calculator
Each figure below was produced by the same code as the calculator, so you can enter the inputs and get the same result. Rates and thresholds are the ones on the official pages linked under “How it is calculated”.
Add 20% VAT to a £250 net price
Standard rate, price before VAT.
- VAT: £250 × 20% = £50.00.
- Gross: £250 + £50.00 = £300.00.
Result: £300.00 including VAT.
Remove 20% VAT from a £120 gross price
Price already includes VAT.
- Net: £120 ÷ 1.20 = £100.00.
- VAT: £120 − £100.00 = £20.00.
Result: £100.00 before VAT. The VAT part is one sixth of a 20%-inclusive price.
Reduced rate: 5% on £84 net
For example home energy; check the category on GOV.UK.
- VAT: £84 × 5% = £4.20; gross £88.20.
Result: £88.20 including 5% VAT.
For comparison: sales tax at an example 8.25% on $250
US sales tax is set by state and local governments and is added at the till; 8.25% is only an example rate, not a national figure.
- Tax: $250 × 8.25% = $20.63; total $270.63.
Result: $270.63. The arithmetic is identical to adding VAT; only the rate and who collects it differ.
How is the VAT Calculator calculated, and where do the rates come from?
Adding VAT multiplies the net price by 1 + rate: £250 × 1.20 = £300.00. Removing it divides by the same factor, which is why 'take 20% off' a VAT-inclusive price gives the wrong answer: 20% of the gross is more than the VAT actually contained in it. The three UK rates are standard 20%, reduced 5% and zero 0%; which one applies depends on the goods or service, not on the seller.
A business must register for VAT when its taxable turnover in any rolling 12 months goes above £90,000; it can apply to deregister when turnover falls below £88,000. Zero-rated sales count towards turnover but carry no VAT, while exempt supplies are a separate category with different rules. The figures were last checked on 29 September 2026.
The calculator works on a single price. On an invoice with several lines you can calculate VAT per line or on the invoice total, and the totals can differ by a penny or two from rounding. Whichever method you use, use it consistently.
A quick way to check any VAT figure is to run it back the other way: add 20% to the net price you got and you should return to the original gross price. If you are quoting a customer, state clearly whether the price includes VAT, because a business that is VAT-registered must account for the VAT on what it receives, whatever the quote said.
- GOV.UK – VAT rates – Standard rate 20%, reduced rate 5% and zero rate 0%, with examples of what each covers.
- GOV.UK – VAT registration thresholds – Register above £90,000 of taxable turnover; deregistration below £88,000.
What are the common mistakes and edge cases?
- Taking 20% off a gross price. Divide by 1.2 (or take one sixth of the total) instead; 20% of £120 is £24, but only £20 of it is VAT.
- Mixing up zero-rated and exempt. Both show no VAT to the customer, but a zero-rated seller can usually reclaim VAT on costs and an exempt seller cannot.
- Counting the registration threshold per tax year. It is based on any rolling 12-month period, so a business can cross it part-way through a year.
- Applying the standard rate to everything. Some items (for example children's car seats and home energy) are at 5%, and most food and children's clothes are zero-rated.
- Assuming US sales tax works like VAT. It is charged once at the final sale, with no input tax to reclaim in the same way.
More in this category: Tax & VAT calculators.
How do you add and remove VAT?
A VAT calculator adds Value Added Tax to a price or takes it out of a price that already includes it. It answers the two questions every business and shopper meets: what is the total with VAT, and how much of this total is VAT?
This VAT calculator lets you add or remove VAT at the UK standard rate of 20%, the reduced rate of 5%, the zero rate, or any custom rate for other countries, and shows the net, VAT and gross amounts side by side.
How do you move between net, VAT and gross?
Choose whether you are adding or removing VAT, enter the amount and pick the rate.
- Add VAT: VAT = net price × rate; gross price = net + VAT.
- Remove VAT: net price = gross ÷ (1 + rate); VAT = gross − net.
- UK rates: standard 20%, reduced 5% and zero 0%, checked against GOV.UK.
- Custom rate: enter any percentage to use the tool for other countries’ VAT or sales taxes.
- Clear breakdown: net, VAT and gross are always shown together with the working.
Removing VAT is not the same as taking 20% off the total – the calculator divides by 1.2 for you, which is the step most people get wrong.
Why does getting VAT right matter?
Small VAT mistakes are easy to make and costly when they repeat across many invoices or prices.
- Price products and services correctly, with and without VAT.
- Check invoices and receipts to see exactly how much VAT was charged.
- Work out the net price of something you bought, for expenses or accounts.
- Compare prices shown with and without VAT between suppliers.
- Understand when a business must charge VAT at all.
A quick add-or-remove VAT calculation keeps invoices, quotes and budgets accurate. For legal and accounting questions, always check with HMRC or a qualified accountant.
Worked walkthrough: adding and removing VAT
A freelancer quotes £250 excluding VAT. At the UK standard rate of 20%, VAT is £250 × 0.20 = £50, so the invoice total is £300. Going the other way, a receipt shows £84 including VAT. Dividing by 1.2 gives a net amount of £70, and the VAT content is £84 − £70 = £14. Subtracting 20% of £84 (£16.80) would wrongly give £67.20. For the reduced rate of 5%, an item with a net price of £100 costs £105 in total, and £105 ÷ 1.05 takes you back to £100.
Avoiding common VAT mistakes
- Always check whether a price is quoted with or without VAT before you compare suppliers.
- To find the VAT inside a 20% gross price quickly, divide the gross amount by 6 (VAT is one sixth of the total at 20%).
- Round at the end of a calculation, not at every step, or small rounding errors can add up across an invoice with several lines.
- If you charge a mix of standard, reduced and zero-rated items on one invoice, total each rate separately before adding VAT.
- Rates and thresholds can change in a Budget. Check GOV.UK for the current rate before you rely on an old figure.
Net, gross and the multiplier for each rate
A net price is before VAT and a gross price includes it. Adding VAT means multiplying the net price by 1 plus the rate, and removing it means dividing the gross price by the same number. The amount of VAT inside a gross price is always a smaller share than the rate itself.
| Rate | Add VAT | Remove VAT | VAT as a share of the gross price |
|---|---|---|---|
| 20% standard | × 1.20 | ÷ 1.20 | 1/6 (16.67%) |
| 5% reduced | × 1.05 | ÷ 1.05 | 1/21 (4.76%) |
| 0% zero | × 1 | ÷ 1 | none |
VAT formulas for adding, removing and finding VAT
Write the rate as a decimal, so 20% is 0.2 and 5% is 0.05. Three formulas cover every case:
- Price including VAT = net price × (1 + rate). At 20%, multiply by 1.2.
- Net price (excluding VAT) = gross price ÷ (1 + rate). At 20%, divide by 1.2.
- VAT inside a gross price = gross price × rate ÷ (1 + rate). At 20%, that is one sixth of the gross price.
The examples below use the UK standard rate of 20% and the UK reduced rate of 5%, both of which are options in the calculator. They work in any currency. VAT rates differ from country to country, so elsewhere choose Custom rate and enter your local rate.
| Example | Net | VAT | Gross |
|---|---|---|---|
| 95 plus 20% VAT | 95.00 | 19.00 | 114.00 |
| 240 plus 20% VAT | 240.00 | 48.00 | 288.00 |
| Remove 20% VAT from 120 | 100.00 | 20.00 | 120.00 |
| Remove 5% VAT from 210 | 200.00 | 10.00 | 210.00 |
If a price is also discounted, the discount calculator works out the reduced price, including stacked percentage discounts, before you add VAT. To show the figures to a customer, the invoice generator adds tax at the rate you choose.
What is charged at each UK rate
Most goods and services are charged at the 20% standard rate. Some supplies carry the 5% reduced rate, for example domestic fuel and power, and children’s car seats. Others are zero-rated, which includes most food and children’s clothing, and books. The precise lists are set by law and can change in a Budget, so check GOV.UK VAT rates for an item you are unsure about. Choose a custom rate to use the tool for another country’s VAT or a sales tax.
Zero-rated and exempt are different
Both mean the customer pays no VAT, but the treatment for the seller differs. A VAT-registered business making zero-rated sales can still reclaim the VAT on its own costs, and those sales count towards turnover for the registration threshold. Exempt sales, such as most insurance, usually do not allow that reclaim and usually do not count towards the threshold. If you supply a mix, the rules become more complex, and an accountant can advise.
A mixed invoice
Work out each line at its own rate. Services of £1,000 net at 20% carry £200 of VAT, and a £400 net item at the 5% reduced rate carries £20. The invoice shows £1,400 net, £220 VAT and £1,620 in total. When you round line by line rather than on the total, differences of a penny can appear, so use one method consistently. The invoice generator lets you enter a tax name and rate and choose whether prices already include tax.
Registration and record-keeping
A UK business must register for VAT when its taxable turnover in the last 12 months goes over the registration threshold, which is £90,000 at the time of writing, and can also register voluntarily. A business can normally reclaim VAT on purchases only with a valid VAT invoice. To recover a net price from a gross total in other percentage situations, use the reverse percentage calculator, and to see how VAT affects your margin use the profit margin calculator.
Plus VAT, exclude VAT and take VAT off: worked amounts
To add VAT at the UK standard rate, multiply the price excluding VAT by 1.2. So 1,000 plus VAT is £1,200, and 110 plus VAT is £132. To exclude VAT, which is also called deducting VAT or taking VAT off, divide the price including VAT by 1.2. The VAT calculation formula is the same in both directions, with the rate written as a decimal.
| Price excluding VAT | VAT at 20% | Total including VAT |
|---|---|---|
| £25.00 | £5.00 | £30.00 |
| £110.00 | £22.00 | £132.00 |
| £750.00 | £150.00 | £900.00 |
| £1,000.00 | £200.00 | £1,200.00 |
| £2,500.00 | £500.00 | £3,000.00 |
| Price including VAT | Price excluding VAT | VAT inside the price |
|---|---|---|
| £120.00 | £100.00 | £20.00 |
| £250.00 | £208.33 | £41.67 |
| £600.00 | £500.00 | £100.00 |
| £1,200.00 | £1,000.00 | £200.00 |
| £6,000.00 | £5,000.00 | £1,000.00 |
A VAT-exclusive price is the net price before VAT is added, and a VAT-inclusive price is the gross price after it. If the rate is not 20%, change it in the calculator: the reduced rate and the zero rate work the same way. The reverse percentage calculator handles the same division for any other percentage.
Rounding on an invoice: per line or on the total?
VAT is worked out to the penny, and rounding can make line-by-line VAT differ from VAT on the invoice total. Take an invoice at 20% with three net lines.
| Line | Net | VAT at 20% | VAT rounded |
|---|---|---|---|
| Item A | £19.99 | £3.998 | £4.00 |
| Item B | £24.99 | £4.998 | £5.00 |
| Item C | £7.49 | £1.498 | £1.50 |
| Total (sum of rounded lines) | £52.47 | £10.50 | |
| Total (VAT on £52.47) | £52.47 | £10.494 | £10.49 |
The two methods differ by one penny. Pick one method for your invoices and apply it consistently, and check your accounting software’s default, because the gross total on a customer’s invoice should match your records. The calculator rounds the single amount you enter.
Frequently Asked Questions (FAQs)
Multiply the price excluding VAT by the VAT rate and add the result. At 20%, £100 plus £20 VAT is £120. Or multiply the price by 1.2.
Divide the price including VAT by 1 plus the rate, written as a decimal. At the UK standard rate of 20%, 120 ÷ 1.2 = 100, so the price excluding VAT is 100 and the VAT removed is 20. At the 5% reduced rate, 210 ÷ 1.05 = 200. In the calculator, choose Remove VAT, enter the gross price and pick the rate, or a custom rate for another country.
The standard rate is 20%, the reduced rate is 5% for a limited list of goods and services, and the zero rate is 0%. Some supplies are exempt from VAT altogether. Rates were checked against GOV.UK.
When taxable turnover over the last 12 months goes over the registration threshold, which is £90,000 at the time of writing. You can also register voluntarily below it.
Yes. The calculator lists the UK rates of 20%, 5% and 0%, and “Custom rate” lets you enter any other rate between 0% and 100%, such as a local VAT, GST or sales tax rate. The maths of adding and removing a percentage tax is the same everywhere, but the calculator does not know which rate applies to what you sell, so check your own country’s rules.
At the UK standard rate of 20%, £1,000 plus VAT is £1,200: £200 of VAT is added to the £1,000 price excluding VAT.
Divide the price including VAT by 1.2 for the 20% rate. For example £1,200 including VAT is £1,000 excluding VAT, and the VAT inside it is £200. Choose Remove VAT in the calculator to do this for any amount or rate.
To add VAT, multiply the net price by 1 plus the rate as a decimal (× 1.2 at 20%). To remove VAT, divide the gross price by the same number. The VAT amount is the gross price minus the net price.
Because 20% of the gross price is more than the VAT it actually contains. On £120 gross, 20% of £120 is £24, but the real VAT is only £20 – taking off 20% overcorrects. Divide by 1.2 instead.
Divide the gross price by 6. VAT is always one sixth of a 20%-inclusive price, so £120 ÷ 6 = £20 of VAT, leaving £100 net.
A VAT-inclusive (gross) price already contains VAT. A VAT-exclusive (net) price is before VAT is added.
Multiply the gross price by the rate and divide by 1 plus the rate. At the UK standard rate of 20%, the VAT is 20 ÷ 120 of the gross price, or one sixth, so a gross price of 288 contains 48 of VAT. At the 5% reduced rate it is 5 ÷ 105, or one twenty-first, so 210 contains 10 of VAT. The calculator shows this as the VAT figure when you choose Remove VAT.
Yes. Three lines of £19.99, £24.99 and £7.49 give £10.50 of VAT if each line is rounded, but £10.49 if VAT is worked out once on the £52.47 total. Use one method consistently.
GOV.UK sets it at £90,000 of taxable turnover. You must register if your turnover for the last 12 months goes over that, or you expect it to within the next 30 days, and you can also register voluntarily below it.
At 20%, divide the VAT-inclusive total by 6. For £120 that is £20 of VAT, leaving £100 net. At 5% divide by 21.
No, unless you register voluntarily. The compulsory registration threshold is £90,000 of taxable turnover over 12 months, according to GOV.UK.
Yes for the arithmetic: enter your local sales tax rate as the percentage. The rate itself depends on the state and locality, so check it with your state's revenue department.
Estimate only – not tax advice. This tool applies the rate you choose to the amount you enter. Whether VAT applies, and at which rate, depends on what is being sold and on your circumstances. Check with HMRC or an accountant for legal or accounting decisions. See our full disclaimer.
Guides that use this calculator
- UK VAT Registration Threshold £90,000: When to Register and What It Does to Your Prices – Register for VAT if taxable turnover goes over £90,000 in 12 months. See the deadlines, and what 20% VAT does to a £100 price: £120.00 or £83.33.
- How to Remove VAT from a Price: Formulas and Worked Examples – Remove VAT by dividing the gross price by 1 plus the rate: 240 ÷ 1.20 = 200 net. Formulas, a 20% and 5% table, rounding tips and common mistakes.