VAT calculator

Add or remove VAT in one step

This VAT calculator links three figures: the net amount (excl. VAT), the VAT itself and the gross amount (incl. VAT). Type any one of them and the other two appear straight away, rounded to the nearest penny. Use it to price a quote, check an invoice or find the net cost of something you have bought. Everything is worked out in your browser and nothing is uploaded.

It is an arithmetic tool: it applies the rate you pick. It does not tell you which rate applies to your goods or services.

How to use it

1. Under "VAT rate", click 20%, 5% or 0%. The standard rate of 20% is selected when the page opens. For any other rate, fill in "Other rate (%)"; decimals are accepted, for example 12.5.
2. Type an amount into "Net amount (excl. VAT)", "VAT amount" or "Gross amount (incl. VAT)". The other two fields are worked out from the last one you edited.
3. "Formulas used" shows the working with your own figures, for example 80 × 1.20 = 96.
4. Tick "Several lines" for a quote or an invoice: each line takes an optional description, a net amount and its own rate. "Add a line" creates another one and the × button removes it. The net total, the VAT at each rate and the gross total update as you type, and "Copy the summary" puts them on your clipboard.

You can type 1250.50, 1,250.50 or 1 250.50: spaces are ignored, and a comma followed by exactly three digits is read as a thousands separator.

The three VAT formulas

• Gross = net × (1 + rate)
• Net = gross ÷ (1 + rate)
• VAT = net × rate

At the standard rate of 20%, take a job priced at £80 net. VAT: 80 × 0.20 = £16. Gross: 80 × 1.20 = £96. Going the other way, 96 ÷ 1.20 = £80 net, and 96 − 80 = £16 of VAT. A handy shortcut at 20%: the VAT is one sixth of the gross price, and 96 ÷ 6 = 16.

At 5%: a gas bill of £210 is made up of 210 ÷ 1.05 = £200 net and £10 of VAT.

The classic mistake: taking 20% off the gross price

VAT is charged on the net price, not on the gross price. Taking 20% off £96 gives £76.80, when the true net figure is £80: you would be £3.20 out. In a gross price at 20%, VAT makes up only 16.67% of the total (16 ÷ 96). To get back to the net price, divide by 1.20.

UK VAT rates

These are broad examples with plenty of exceptions: a restaurant meal, for instance, is not taxed like food bought in a shop. Rates and the rules around them change over time, so check the rate for a specific case with HMRC. This calculator is not a substitute for an accountant.

Rounding: why a total can be a penny out

Amounts are rounded to the nearest penny. On a quote, the result can differ by a penny depending on whether you round each line or only the total. Take three items at £1.37 net, at 20%. Line by line, the VAT is £0.274, rounded to £0.27, so £0.81 for the three. On the total, 4.11 × 0.20 = £0.822, rounded to £0.82.

In "Several lines" mode, the calculator works out VAT on the net total for each rate: here it shows £0.82 of VAT and a gross total of £4.93, while each line shows £1.64 gross. Both methods are in use; what matters is keeping to the same one across a whole document.

Frequently asked questions

How do I remove VAT from a price?

Divide the gross price by 1 plus the rate: by 1.20 at 20%, by 1.05 at 5%. In the calculator, type the price into "Gross amount (incl. VAT)": £59.99 at 20% gives £49.99 net and £10.00 of VAT.

How do I work out VAT on a quote with several lines?

Tick "Several lines", then enter the net amount and the rate for each line. Example: £450 at 20% and £200 at 5% give a net total of £650, VAT of £90 and £10, and a gross total of £750.

My business is not VAT-registered. Do I add VAT?

A business that is not registered for VAT does not charge VAT: its price is simply the price the customer pays. Registration becomes compulsory above a turnover threshold that changes from time to time, so check your own position with HMRC or an accountant.

Can I start from the VAT amount?

Yes. Type the tax into "VAT amount": with £45 of VAT at 20%, the calculator finds £225 net and £270 gross. At a rate of 0% this sum cannot be done, and the other fields stay empty.