Free VAT Calculator

What is VAT?

VAT (value added tax) is a sales tax added to many goods and services. On invoices you may work from a net price (excluding VAT) or a gross price (including VAT). You need all three figures, net, VAT, and gross, to quote correctly and keep records straight.

How this calculator works

1. Enter the amount: In net-to-gross mode, enter the net amount. In gross-to-net mode, enter the gross amount that already includes VAT.
2. Enter the VAT rate: Use the rate that applies to your sale, such as 20% in the UK standard band or 0% for zero-rated items.
3. Choose the direction: Net-to-gross adds VAT on top of the net figure. Gross-to-net extracts VAT from a tax-inclusive total.
4. Calculate net, VAT, and gross: Net-to-gross: gross = net × (1 + rate ÷ 100), VAT = gross − net. Gross-to-net: net = gross ÷ (1 + rate ÷ 100), VAT = gross − net.

VAT formulas

Both directions use the same rate. VAT is always the difference between gross and net after rounding to two decimal places.

Worked example

A net price of £1,000 at 20% VAT gives gross £1,000 × 1.2 = £1,200 and VAT £200. Starting from gross £1,200, net is £1,200 ÷ 1.2 = £1,000 and VAT is again £200.

When to use this calculator

Use it when a client asks for a VAT-inclusive quote, when checking a supplier invoice, or when splitting VAT from a receipt total for bookkeeping.