acalculator

How much VAT is in this price?

Type a price and a VAT rate, and say whether the price already includes VAT. The VAT calculator shows the VAT, the price before VAT and the price with VAT.

Your numbers

The amount
VAT
20.00

VAT: 20.00. Net price 100.00, gross price 120.00.

Net price
100.00
Gross price
120.00
VAT fraction
16.6667%

VAT: 20.00. VAT: 20.00. Net price 100.00, gross price 120.00.

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Adds VAT to a net price or takes it out of a VAT-inclusive price at any rate, with the VAT fraction, the net price and the gross price.

Example with the default inputs (The amount Excludes VAT (add VAT), Amount 100, VAT rate 20%): VAT: 20.00. Net price 100.00, gross price 120.00.

Method: Add VAT: VAT = net × rate ÷ 100, gross = net + VAT. Remove VAT: VAT = gross × rate ÷ (100 + rate) (the VAT fraction), net = gross − VAT.

  • One VAT rate applies to the whole amount.
  • Amounts are in any one currency; results round half up to 2 decimals.
  • Where a business rounds VAT on each line of an invoice, its total can differ by a penny from this one.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. The amount Includes VAT (remove VAT), Amount 2.4, VAT rate 20% gives VAT 0.4, Net price 2, Gross price 2.4, VAT fraction 16.666667%.Source: HMRC, VAT guide (VAT Notice 700), §7.3.1 VAT fractions: rate ÷ (100 + rate). https://www.gov.uk/guidance/vat-guide-notice-700 (a £2.40 price at 20% includes 40p of VAT, one-sixth of £2.40)
  2. The amount Includes VAT (remove VAT), Amount 21, VAT rate 5% gives VAT 1, Net price 20, VAT fraction 4.761905%.Source: HMRC, VAT guide (VAT Notice 700), §7.3.1 VAT fractions: rate ÷ (100 + rate). https://www.gov.uk/guidance/vat-guide-notice-700 (the VAT fraction at 5% is 1/21)
  3. The amount Includes VAT (remove VAT), Amount 47, VAT rate 17.5% gives VAT 7, Net price 40, VAT fraction 14.893617%.Source: HMRC, VAT guide (VAT Notice 700), §7.3.1 VAT fractions: rate ÷ (100 + rate). https://www.gov.uk/guidance/vat-guide-notice-700 (the VAT fraction at 17.5% is 7/47)
  4. The amount Excludes VAT (add VAT), Amount 100, VAT rate 20% gives VAT 20, Net price 100, Gross price 120.Source: HMRC VAT Notice 700 (VAT is charged at the rate on the value of the supply)
  5. The amount Excludes VAT (add VAT), Amount 0.1, VAT rate 20% gives VAT 0.02, Gross price 0.12.

How it works

Add VAT (the amount excludes VAT):

  • VAT = net × rate ÷ 100
  • Gross price = net × (100 + rate) ÷ 100 = net + VAT

Remove VAT (the amount includes VAT):

  • VAT fraction = rate ÷ (100 + rate)
  • VAT = gross × VAT fraction
  • Net price = gross − VAT

The VAT fraction is shown as a percent in both modes (16.6667% at a 20% rate). Every step is an exact fraction of the decimals you type, and each output rounds once, half up, to 2 decimals (the fraction to 4 decimals).

Assumptions

  • One VAT rate applies to the whole amount. The rate is from 0% to 100%; the amount is from 0 to 1,000,000,000,000 in any one currency.
  • Results are for the total. A business that rounds VAT on each invoice line can get a total a penny or so different.

Worked examples by hand

Remove 20% VAT from £2.40 (HMRC). Fraction 20 ÷ 120 = 1/6; VAT = 2.40 ÷ 6 = £0.40; net = 2.40 − 0.40 = £2.00.

Remove 5% VAT from £21. Fraction 5 ÷ 105 = 1/21; VAT = 21 ÷ 21 = £1.00; net = £20.00.

Remove 17.5% VAT from £47. Fraction 17.5 ÷ 117.5 = 7/47; VAT = 47 × 7/47 = £7.00; net = £40.00.

Add 20% VAT to £100. VAT = 100 × 20 ÷ 100 = £20.00; gross = £120.00.

Add 20% VAT to £0.10. VAT = 0.10 × 0.20 = £0.02 exactly; gross = £0.12.

Other questions people ask

How do I add VAT to a price?

Multiply the net price by the rate and add the result. At 20%, £100 has £20 of VAT, so the gross price is £120. In one step: net × 1.20.

How do I remove VAT from a price that includes it?

Multiply the gross price by the VAT fraction, rate ÷ (100 + rate). At 20% the fraction is 20 ÷ 120 = 1/6, so £2.40 includes 40p of VAT and the net price is £2.00. Do not take 20% of the gross price: that gives 48p, which is too much.

What is the VAT fraction?

It is the share of a VAT-inclusive price that is VAT: rate ÷ (100 + rate). HMRC lists 1/6 for 20%, 1/21 for 5% and 7/47 for the old 17.5% rate.

What are the UK VAT rates?

The standard rate is 20%. The reduced rate of 5% covers items such as domestic fuel and power, and some goods, such as most food, books and children’s clothes, are zero-rated (0%). Check GOV.UK for the rate on a given item.

Does this work for VAT in other countries?

Yes. The maths is the same for any VAT or goods and services tax charged on the price: type your country’s rate. The amount can be in any currency.

Why does my invoice differ by a penny?

A business may work out VAT on each line and round each line before adding them up. This calculator works on the total and rounds once, so the two can differ by a penny or so.