# How much VAT is in this price?

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.

- Page: https://www.acalculator.org/finance/vat-calculator
- JSON spec: https://www.acalculator.org/finance/vat-calculator.json
- Version: a5c5e81ba00a

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| mode | The amount | Whether the amount you type is before VAT (add VAT) or already includes VAT (remove VAT). |
| amt | Amount | The price in any currency: before VAT to add VAT, or including VAT to take it out. |
| rate | VAT rate | The VAT rate in percent, for example 20 for the UK standard rate or 5 for the reduced rate. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| vat | VAT | The VAT in the price. |
| net | Net price | The price before VAT. |
| gross | Gross price | The price including VAT. |
| fraction | VAT fraction | Rate ÷ (100 + rate): the share of a VAT-inclusive price that is VAT, as a percent. |

## Method

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

## Assumptions

- 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.

## Worked examples

1. mode = remove, amt = 2.4, rate = 20% gives vat = 0.4, net = 2, gross = 2.4, 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. mode = remove, amt = 21, rate = 5% gives vat = 1, net = 20, 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. mode = remove, amt = 47, rate = 17.5% gives vat = 7, net = 40, 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. mode = add, amt = 100, rate = 20% gives vat = 20, net = 100, gross = 120. Source: HMRC VAT Notice 700 (VAT is charged at the rate on the value of the supply).
5. mode = add, amt = 0.1, rate = 20% gives vat = 0.02, gross = 0.12.

## FAQ

### 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.

## Sources

- HMRC, VAT guide (VAT Notice 700), §7.3.1 VAT fractions (rate ÷ (100 + rate); 1/6 at 20%, 1/21 at 5%, 7/47 at 17.5%; £2.40 includes 40p VAT). https://www.gov.uk/guidance/vat-guide-notice-700 (retrieved 2026-10-05)
- GOV.UK, VAT rates on different goods and services (standard 20%, reduced 5% and zero rates). https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services (retrieved 2026-10-05)