VAT Calculator

Use this VAT Calculator to add VAT to a net price, remove VAT from a VAT-inclusive total, or calculate VAT amount only. It’s designed for clear pricing, invoices, and quick checks with precise rounding controls.

Choose a mode, enter an amount and VAT rate, then get a full breakdown: Net Amount (exclusive), VAT Amount, and Gross Amount (inclusive). Results include VAT share of total, step-by-step formulas, and copy-ready summaries.

If you’re comparing tax tools, you can also open the GST Calculator or browse All Calculators. For more in this category, Browse more in Tax Calculators.

Calculator Tool

Calculation Mode
Select how you want to apply VAT: add to a net price, remove from a VAT-inclusive price, or compute VAT only.
Enter a positive amount. Commas and spaces are allowed.
Valid range: 0 to 100 (decimals allowed). Use quick rates or type your own.
Changes symbol and formatting only; no exchange rate conversion is performed.
Advanced Set decimal precision and rounding mode.
Controls how many decimals are shown and applied to rounding/truncation.
“Round half up” rounds 1.235 → 1.24 at 2 decimals. “Truncate” cuts extra decimals without rounding.

Your VAT Breakdown

Enter values and calculate to see results.

Net Amount (exclusive)

The amount before VAT is applied.

VAT Amount

Tax portion calculated at your VAT rate.

Gross Amount (inclusive)

Total amount including VAT.

VAT Share of Total

Shows how much of the gross amount is VAT (VAT ÷ Gross).

Step-by-step breakdown

Copy buttons produce clean plain text for invoices, emails, or notes.

How it works

VAT is typically computed using a percentage rate. This calculator uses three common variables: Net (exclusive price), Gross (inclusive price), and Rate (VAT % as a decimal, for example 20% = 0.20). The VAT amount is the difference between gross and net when VAT is included.

Add VAT (exclusive → inclusive)
VAT = Net × Rate
Gross = Net + VAT

Remove VAT (inclusive → exclusive)
Net = Gross ÷ (1 + Rate)
VAT = Gross − Net

VAT share of total
VAT Share = VAT ÷ Gross

Precision is controlled by the Advanced settings. “Round half up” rounds at the chosen decimal place, while “Truncate” removes extra decimals without rounding. All calculations run locally in your browser for fast results and privacy.

Use cases

  • Invoicing a client (net → gross): Quote a net service fee, add VAT, and show the total payable clearly on the invoice.
  • Retail price tags (gross → net): If a shelf price includes VAT, remove VAT to estimate the underlying net price for margin checks.
  • Expense claims and reimbursements: Split a VAT-inclusive receipt into net and VAT portions for reporting or internal accounting.
  • B2B vs B2C quoting: Compare what a customer sees (gross) versus what the business tracks (net) without changing currency.
  • Quick VAT-only checks: Calculate VAT on a base amount to verify tax lines on quotes, proformas, or purchase orders.

Examples

Example 1: Add VAT to a net price (Exclusive → Inclusive)

Context: A consultant charges a net fee of 1,000.00 at a 20% VAT rate.

Inputs:
Net = 1,000.00
Rate = 20% = 0.20

Steps:
VAT = Net × Rate = 1,000.00 × 0.20 = 200.00
Gross = Net + VAT = 1,000.00 + 200.00 = 1,200.00

Outputs:
Net = 1,000.00
VAT = 200.00
Gross = 1,200.00

Example 2: Remove VAT from a VAT-inclusive total (Inclusive → Exclusive)

Context: A receipt shows a VAT-inclusive total of 575.00 at 15% VAT.

Inputs:
Gross = 575.00
Rate = 15% = 0.15

Steps:
Net = Gross ÷ (1 + Rate) = 575.00 ÷ 1.15 = 500.00
VAT = Gross − Net = 575.00 − 500.00 = 75.00

Outputs:
Net = 500.00
VAT = 75.00
Gross = 575.00

Example 3: VAT amount only (Quick compute)

Context: You need the VAT amount on a base purchase of 2,400.00 at 5%.

Inputs:
Base = 2,400.00
Rate = 5% = 0.05

Steps:
VAT = Base × Rate = 2,400.00 × 0.05 = 120.00
Gross = Base + VAT = 2,400.00 + 120.00 = 2,520.00

Outputs:
Net (base) = 2,400.00
VAT = 120.00
Gross = 2,520.00

Common Mistakes

  • Mixing up exclusive (net) and inclusive (gross) prices and applying the wrong mode.
  • Removing VAT by subtracting “rate%” from gross instead of using Gross ÷ (1 + Rate).
  • Typing the VAT rate as a decimal (0.20) instead of a percent (20) and getting a result that’s 100× off.
  • Rounding each step manually and introducing small differences versus rounding only at the final display precision.
  • Copying amounts with commas/spaces but not checking that the numeric meaning stayed the same (e.g., “1 250” vs “1250”).

Quick Tips

  • When a price says “including VAT,” use Remove VAT to split it into net and VAT portions.
  • Use the rate chips for speed, then fine-tune by typing decimals like 7.5 if needed.
  • For consistent reporting, set a fixed precision (often 2 decimals) and keep the same rounding mode across documents.
  • Check the VAT Share of Total to quickly understand how much of the final price is tax.
  • Use Copy Full Summary to paste a clean calculation record into an invoice note or email.

Trust & Accuracy (E-E-A-T)

Accuracy & Method: This calculator performs VAT math using standard formulas (add VAT, remove VAT, and VAT share). Calculations run locally in your browser for fast, consistent results.

Rounding / Precision Policy: Display precision is set in Advanced (0–4 decimals). “Round half up” rounds at the chosen decimal place (for example, 1.235 → 1.24 at 2 decimals). “Truncate” removes extra decimals toward zero without rounding.

Privacy-first: No data is sent to a server. Your inputs stay on your device.

Last updated: 2026-01-20

Sources & References:

  • General VAT calculation guidance (exclusive vs inclusive pricing concepts).
  • Standard accounting practice for separating net, tax, and gross amounts.
  • Common rounding conventions used in invoices and financial statements.
  • VAT share interpretation as a proportion of total inclusive price.

FAQ

1) What is VAT and what does this calculator actually output?
VAT (Value Added Tax) is a consumption tax added to many goods and services. This calculator always shows three numbers so you can see the full picture: Net Amount (exclusive), VAT Amount, and Gross Amount (inclusive). In “Add VAT,” you enter a net price and the tool computes the VAT and total. In “Remove VAT,” you enter a VAT-inclusive total and the tool extracts the net and VAT portion. In “VAT Amount Only,” you enter a base amount and rate to get the VAT quickly while still showing net and gross for clarity.
2) How do I add VAT to a net (exclusive) price?
Use the “Add VAT (Exclusive → Inclusive)” mode when your amount is before tax. Enter the net amount and the VAT rate as a percentage. The VAT amount is calculated as Net × Rate (where Rate is VAT% divided by 100). The gross amount is Net + VAT. For example, with a net of 1,000 and a 20% rate, VAT is 200 and gross is 1,200. This mode is common for invoices that list net fees and show VAT as a separate line item before the total payable.
3) How do I remove VAT from a VAT-inclusive (gross) price?
Use the “Remove VAT (Inclusive → Exclusive)” mode when your price already includes VAT. The key is that you should not simply subtract “VAT%” from the gross number. Instead, convert the rate to a decimal and compute Net = Gross ÷ (1 + Rate). Then VAT = Gross − Net. Example: gross 575 at 15% VAT gives net 575 ÷ 1.15 = 500, and VAT 75. This method correctly extracts the VAT portion because the gross is a net amount plus VAT on that net amount.
4) What does “VAT Share of Total” mean and how is it calculated?
VAT Share of Total shows the portion of the gross amount that is VAT. It’s calculated as VAT ÷ Gross, expressed as a percentage. This can be useful when reviewing receipts, comparing pricing structures, or communicating how much of a VAT-inclusive price is tax. For example, if gross is 1,200 and VAT is 200, VAT share is 200 ÷ 1,200 = 0.1667, or about 16.67%. The share is always clamped between 0% and 100% for display to avoid visual glitches, and it updates alongside the ring indicator.
5) What VAT rates can I use, and can I enter decimals like 7.5%?
You can enter any VAT rate from 0 to 100, including decimals such as 7.5. The quick rate buttons (for example 5%, 10%, 20%) are only shortcuts; they don’t restrict what you can type. A 0% rate will produce VAT of 0 and net equals gross, which can be helpful for zero-rated checks or confirming that an item has no VAT applied. Rates above 100 are rejected to prevent unrealistic results and to avoid divide-by-zero style issues in the “Remove VAT” formula where (1 + Rate) must remain positive.
6) How do the precision and rounding settings affect my results?
Precision sets how many decimal places the outputs are rounded or truncated to (0–4). With “Round half up,” values are rounded at the chosen decimal place, which is common for invoice totals. With “Truncate,” extra decimals are removed toward zero without rounding, which can be useful for conservative estimates or systems that require truncation. The calculator applies the selected policy consistently across Net, VAT, and Gross outputs. Small differences can appear when comparing to other tools if they use a different rounding rule or round intermediate steps instead of only the final displayed amounts.
7) Does changing the currency convert the values with exchange rates?
No. The currency selector changes the display symbol and numeric formatting only; it does not perform any foreign exchange conversion. If you enter 1,000 and select USD, the tool displays it with a dollar sign. If you switch to EUR, the numeric value remains 1,000 but is displayed with a euro sign. This is intentional so the VAT math stays purely rate-based and consistent. If you need exchange rate conversion, convert your amount separately first, then use the VAT calculator on the converted amount using the same VAT rate and rounding settings for a clean record.
8) Can I rely on this for invoices and official filings?
This tool is designed for accurate calculations using standard formulas, making it useful for quotes, invoice preparation, and quick checks. However, VAT rules can vary by jurisdiction, product category, exemptions, and invoicing requirements, and the correct rate or treatment depends on your specific situation. Use this calculator to compute the math once you know the applicable VAT rate and whether your price is net or gross. For formal filings or compliance decisions, confirm the rate and method with official guidance or a qualified professional, then match the calculator’s rounding settings to your invoicing system.
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