Finance
How to Calculate VAT
VAT calculations are common for invoices, quotes, online stores and accounting checks. The key is knowing whether your starting price is before tax or already includes VAT.
Open the VAT calculatorAdd VAT to a net price
To add VAT, multiply the price before tax by the VAT rate, then add the result to the original price.
For example, with a net price of 100 and a VAT rate of 20%, VAT is 100 × 20 / 100 = 20, so the gross price is 120.
Extract VAT from a gross price
If the price already includes VAT, divide the gross price by 1 plus the VAT rate. With 20% VAT, divide by 1.20.
For a gross price of 120 at 20%, the net price is 120 / 1.20 = 100 and the VAT amount is 20.
Frequently asked questions
What is the easiest VAT formula?
VAT amount = net price × VAT rate / 100. Gross price = net price + VAT amount.
Related calculator
VAT Calculator
Free VAT calculator to add VAT to a net price or extract VAT from a gross price. Use common preset rates or enter a custom VAT percentage for your country, product or special case.
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