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.

VAT Calculator
Direction
VAT rate
£
Gross (including VAT)—
VAT at 20%—
Net amount—
Working— × 1.2 = —

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

  1. Choose whether to add VAT to a net amount or remove VAT from a gross amount.
  2. Pick the VAT rate — 20% standard, 5% reduced or 0% zero-rated.
  3. 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%.

Frequently asked questions

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