VAT Calculator
Add VAT to a net price or remove VAT from a gross price at the UK standard, reduced or zero rate. See the net, the VAT amount and the gross instantly.
The VAT formulas
Adding VAT: Gross = Net × (1 + Rate ÷ 100) • Removing VAT: Net = Gross ÷ (1 + Rate ÷ 100)
- To add VAT, turn the rate into a multiplier — 20% becomes 1.2 — and multiply the net amount by it.
- To remove VAT, divide the gross amount by the same multiplier. £120 ÷ 1.2 = £100 net.
- The VAT itself is the difference between gross and net. At 20%, the VAT portion of a gross price is exactly one sixth.
How to use this calculator
- Choose whether to add VAT to a net amount or remove VAT from a gross amount.
- Pick the VAT rate — 20% standard, 5% reduced or 0% zero-rated.
- Enter the amount; the net, VAT and gross figures update instantly.
Worked examples
Adding 20% VAT to a net price
A £100 net invoice at the standard rate. Gross = £100 × 1.2 = £120. VAT = £120 − £100 = £20.
Removing 20% VAT from a gross price
A £120 gross bill at 20%. Net = £120 ÷ 1.2 = £100. VAT = £120 − £100 = £20 (one sixth of the gross).
Adding 5% reduced-rate VAT
A £100 home-energy bill at the 5% reduced rate. Gross = £100 × 1.05 = £105. VAT = £5.
Removing VAT from a larger gross amount
A £600 gross invoice at 20%. Net = £600 ÷ 1.2 = £500. VAT = £100. Dividing by 1.2 is the correct way to strip VAT — never take 20% off the gross, which would give £120 and the wrong net.
A price that already includes VAT
A consumer pays £240 including 20% VAT. Net = £240 ÷ 1.2 = £200. VAT = £240 − £200 = £40. Quoting net £200 plus £40 VAT gives the £240 gross price.
Net, gross and the UK VAT rates
VAT calculations come down to three figures and three rates. Here is what each means.
- Net amount
- The price before VAT is added. Businesses registered for VAT usually quote and invoice net prices.
- Gross amount
- The price including VAT — what a consumer actually pays. It is the net plus the VAT.
- VAT rates
- The UK standard rate is 20%. A reduced rate of 5% applies to some items such as home energy, and a zero rate (0%) applies to most food and children’s clothing. Zero-rated sales still count as VATable at 0%.