VAT Calculator
Add or remove VAT from a price at any tax rate.
$120.00
About this calculator
How This VAT Calculator Works
Enter an amount and a VAT rate, and choose whether to add VAT to a net price or remove it from a gross (VAT-inclusive) price.
Worked Examples
Adding VAT: a $100 net price with 20% VAT comes to $120 total — $20 in VAT.
Removing VAT: a $120 VAT-inclusive price with 20% VAT breaks down to $100 net — $20 was VAT.
The Formulas
Adding VAT: Total = Amount × (1 + rate). Removing VAT from a gross price: Net = Gross ÷ (1 + rate) — dividing rather than subtracting the same percentage, since the rate applies to the net price, not the gross one.
A Common Mistake
To back a net price out of a VAT-inclusive total, you can't just subtract the percentage from the gross amount — subtracting 20% of $120 gives $96, not the correct $100. Because the rate is defined relative to the net price, removing VAT requires dividing by (1 + rate), not multiplying the gross by (1 − rate). This calculator handles that distinction automatically so you don't have to remember which direction the math goes.
Worked example
Adding 20% VAT to a $100 price gives $20 of VAT, for a total of $120. Going the other way, a $120 VAT-inclusive price at 20% breaks down to $100 net plus $20 VAT.
Frequently asked questions
What's the difference between the two modes?
"Add VAT" starts from a price that excludes tax and adds it on top. "Remove VAT" starts from a final, tax-inclusive price and works out how much of it was VAT — useful when a receipt only shows the total.
Why can't I just multiply the total by the VAT rate to remove it?
Because the rate applies to the pre-VAT price, not the total — dividing a $120 total by 1.20 (not multiplying by 0.20) is what correctly recovers the $100 net price.
Do VAT rates vary by product?
Yes, in most countries that use VAT — many apply a standard rate plus reduced rates for essentials like food or books. Use the rate that applies to your specific item.