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VAT Calculator

Add or remove UK VAT from a price, then see the net price, VAT amount and gross price with the formula shown clearly.

Use the calculator VAT formula

Calculate VAT

Enter an amount, choose whether you want to add or remove VAT, then select the VAT rate. The standard UK VAT rate is 20%, but some goods and services use 5% or 0%.

Use the net amount if adding VAT, or the gross amount if removing VAT.
Result
£120.00 gross
£100.00 net + £20.00 VAT at 20%.
Net price£100.00
VAT amount£20.00
Gross price£120.00
Add VAT: £100.00 × 1.20 = £120.00.
Important: removing 20% VAT from a VAT-inclusive price does not mean subtracting 20%. Divide by 1.20 to get the net price.

How the VAT calculator works

VAT is added to a net price to produce the gross price the customer pays. If a price already includes VAT, the calculator reverses the calculation to separate the net price and VAT amount.

Add VAT: Gross price = Net price × (1 + VAT rate) VAT amount = Gross price − Net price Remove VAT: Net price = Gross price ÷ (1 + VAT rate) VAT amount = Gross price − Net price

The calculator rounds money values to the decimal places you choose, usually 2 decimal places for pounds and pence. Related Calculatorz pages include How to calculate percentages, discount and How to work out a discount in your head.

How to remove VAT from a price

For the standard 20% VAT rate, a VAT-inclusive price is 120% of the net price. That means you divide the gross price by 1.20.

Remove 20% VAT from £120£120 ÷ 1.20 = £100 net. VAT is £20.
Remove 5% VAT from £210£210 ÷ 1.05 = £200 net. VAT is £10.
Add 20% VAT to £100£100 × 1.20 = £120 gross. VAT is £20.
Add 5% VAT to £200£200 × 1.05 = £210 gross. VAT is £10.

UK VAT rates to know

UK VAT is not one single rule for every item. The standard rate applies to most goods and services, but reduced, zero-rated, exempt and outside-the-scope items also exist.

RateTypical use
20%Standard rate for most goods and services.
5%Reduced rate for some goods and services.
0%Zero-rated goods and services.

Always check the correct VAT treatment for the specific item or service. This calculator works out the maths; it does not decide whether something is standard-rated, reduced-rated, zero-rated or exempt.

Common VAT mistakes

  • Subtracting 20% from the gross price: this gives the wrong net price. Use gross ÷ 1.20 for standard-rate VAT.
  • Mixing up net and gross: net means before VAT; gross means including VAT.
  • Assuming every item uses 20%: some items use 5%, 0%, are exempt or are outside the scope of VAT.
  • Rounding too early: for invoices, calculate first and round the final money values consistently.

Related everyday maths calculators

VAT is just one percentage calculation. These tools help with sale prices, bill splits and quick comparisons.

Percentage CalculatorWork out percentage changes, increases and decreases.
Discount CalculatorFind sale prices and savings.
Unit Price Comparison CalculatorCompare prices per unit before buying.
Ratio CalculatorSimplify and scale ratios.

VAT calculator FAQs

How do I add 20% VAT?

Multiply the net price by 1.20. For example, £100 × 1.20 = £120.

How do I remove 20% VAT?

Divide the gross price by 1.20. For example, £120 ÷ 1.20 = £100 net, so the VAT is £20.

Is VAT always 20% in the UK?

No. The standard rate is 20%, but some goods and services use 5% or 0%, and some are exempt or outside the scope of VAT.

What is the difference between net and gross price?

Net price is the price before VAT. Gross price is the price including VAT.

Useful glossary terms

VAT Gross price Net price Percentage Rounding
Need the method explained?

Read the guide to adding or removing VAT from a price, with worked examples.

Read VAT guide

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