VAT Calculator
Add VAT to a net amount, or work backwards from a gross amount to find the net price and the VAT included. Enter any rate. Nothing is sent anywhere.
Adding VAT
To add VAT to a net price, multiply by the rate: VAT = net × rate ÷ 100, and gross = net + VAT. At 20%, a net price of 100 carries 20 of VAT for a gross of 120. This is the direction most people get right.
Removing VAT: the mistake almost everyone makes
To find the net amount inside a gross price, you must divide by (1 + rate ÷ 100), not subtract the rate. A gross of 120 at 20% is 120 ÷ 1.2 = 100 net, with 20 of VAT. Taking 20% off 120 instead gives 96, which is wrong by 4. The error grows with the rate: at 25% a gross of 125 is 100 net, but 25% off 125 is 93.75. Bookkeeping errors of this kind are common in expense claims and price lists copied from consumer websites, where prices include tax.
A handy shortcut for the VAT inside a gross figure: multiply the gross by rate ÷ (100 + rate). At 20% that is 1 ÷ 6, so the VAT inside 120 is 120 ÷ 6 = 20. At 25% it is 1 ÷ 5.
Which rate to use
Standard VAT rates in the European Union range from 17% to 27%, and most countries also have one or more reduced rates for things like food, books, hotels or energy. The suggestions on the rate field are EU standard rates; always check the rate that applies to the specific goods or service and country, since rates change. Outside Europe, the same maths applies to GST in Australia, New Zealand, India and Canada, and to sales tax in the United States, though sales tax is normally quoted on top of listed prices rather than included.
When you invoice a business customer in another EU country and both sides are VAT-registered, the reverse-charge mechanism usually applies: you charge no VAT and add the reverse-charge note to the invoice. That is a tax rule rather than a calculation, so check it with your accountant.
Frequently asked questions
Why does my result differ by a cent from my invoice software?
Rounding. Software may round each line, or the total, or use more decimal places internally. Differences of a cent are normal and acceptable.
Can I use decimals in the rate, like 8.25%?
Yes. Any rate from 0 upwards works, including sales-tax style rates with several decimals.
Worked example
A consultant in a country with 25% VAT quotes 2,000 net. VAT is 2,000 × 0.25 = 500, so the invoice total is 2,500. A client who only knows the gross figure of 2,500 gets back to net by dividing by 1.25, not by subtracting 25%.
Can I enter negative amounts for credit notes?
Not here; enter the credit note as a positive amount and treat the result as negative.
Does this handle several items at once?
Add the net amounts first, then calculate VAT on the total, or calculate per item and sum. Both give the same result apart from cent rounding.
Is my data stored?
No. Everything runs in your browser.