Use our VAT Calculator to add or remove Value Added Tax in seconds. Enter a net or gross amount, choose your VAT rate, and instantly see net, VAT, and gross totals for quick quotes, invoices, and budgeting.
What is VAT and why it matters
VAT (Value Added Tax) is an indirect tax applied to most goods and services in many countries. Whether you are a freelancer, a small business owner, or a savvy shopper, understanding VAT helps you price correctly, comply with regulations, and compare costs accurately. This VAT Calculator takes the complexity out of tax arithmetic by providing fast, reliable figures for both adding VAT to net prices and extracting VAT from gross prices.
How to use the VAT Calculator
- Select the amount type: Net amount (before VAT) or Gross amount (including VAT).
- Enter the amount you have.
- Type your VAT rate as a percentage (for example, 20 for 20%).
- Optionally choose a currency and whether to round to two decimals.
- Click Calculate VAT to see net, VAT, and gross totals.
If you have a pre-tax price, select Net amount to add VAT and get the final price. If your figure already includes tax, select Gross amount to remove VAT and reveal the net base and the VAT portion.
Key benefits of this VAT Calculator
- Two-way calculation: add VAT to net prices or remove VAT from gross prices.
- Flexible rates: works with any VAT percentage, including reduced and zero rates.
- Clear breakdown: shows net amount, VAT amount, and gross total.
- Optional rounding: present results to two decimals for invoices and quotes.
- Currency labels: helpful visual cue when formatting results.
Common scenarios this tool solves
Pricing a new quote
Start with your net cost and margin, then add VAT to present a tax-inclusive price to customers. The VAT Calculator ensures your totals are precise and client-ready, reducing manual errors.
Extracting VAT from receipts
Have a total price that already includes VAT? Select Gross amount, enter the figure and VAT rate, and the calculator will instantly separate the VAT portion from the net base, which is perfect for bookkeeping and expense claims.
Comparing suppliers across VAT rules
Suppliers in different regions may quote prices with or without VAT. Use the calculator to normalize prices to net or gross for accurate comparisons.
Best practices for accurate VAT calculations
- Confirm the correct VAT rate for your product or service category; some items qualify for reduced or zero rates.
- Decide whether to display prices inclusive or exclusive of VAT, depending on local rules and your audience.
- Use rounding to two decimals for customer-facing quotes and invoices, especially when dealing with currencies that use cents or pence.
- Document your VAT assumptions (rate, date, jurisdiction) for audit trails and consistent pricing.
VAT calculation formulas explained
When starting with a net amount, VAT is calculated as Net × Rate, and Gross equals Net + VAT. When starting with a gross amount, the net is Gross ÷ (1 + Rate), and VAT equals Gross ? Net. These formulas ensure consistent results whether you are adding or removing VAT. The VAT Calculator applies these exact formulas and shows each component clearly so you can verify your figures.
Who should use this VAT Calculator?
Freelancers, e-commerce sellers, bookkeepers, and finance teams will all benefit from quick and accurate VAT calculations. It is equally useful for consumers who want to understand how much of a purchase price is tax versus the underlying value of the goods or services.
Get started
Enter your amount, choose the correct VAT rate, and click Calculate VAT. You will get a clean breakdown that you can use for pricing, accounting entries, or budgeting decisions. The calculator is fast, flexible, and built to remove friction from everyday tax math.