CalcBeacon logoCalcBeacon
CalcBeacon tool

VAT Calculator

Add or remove VAT from a price and see the net, VAT and gross amounts clearly.

Start calculatorView category
Quick start

Enter an amount, set the VAT rate, and choose whether your amount is net or gross.

Net amount
£100.00
VAT amount
£20.00
Gross amount
£120.00
Mode
Add
Main result
£120.00
Using £100.00 as a net amount at 20% VAT gives a gross total of £120.00.

What this tool helps with

Use this VAT calculator to add VAT to a net price or remove VAT from a gross price. It is useful for invoices, ecommerce pricing, receipts and quick UK tax checks.

Quick Guide

Quick answer

VAT Calculator: VAT is a tax added to many goods and services. A VAT-inclusive price already contains VAT, while a VAT-exclusive price needs VAT added on top.

Formula / core ruleGross price = net price × (1 + VAT rate). VAT amount = gross price − net price. Net price from gross = gross price ÷ (1 + VAT rate).

This is the main calculation rule used by the tool.

Worked exampleAt 20% VAT, a £100 net price becomes £120 gross. If £120 is VAT-inclusive, the net price is £120 ÷ 1.20 = £100 and the VAT amount is £20.

Use the example to check whether your own inputs are in the right range.

Common mistakeRemoving 20% VAT is not the same as subtracting 20% from the gross price. For 20% VAT, divide by 1.20.

This is the most common reason the result can look wrong.

How to interpret the result

The net amount is the price before VAT, the VAT amount is the tax portion, and the gross amount is the customer-facing total including VAT.

Methodology

The calculator converts the VAT rate into a multiplier and applies the correct add-or-remove formula depending on whether your starting price includes VAT.

Important decisions should be checked against payslips, lender documents, tax guidance, official policy or professional advice where relevant.

Reviewed by CalcBeacon Editorial TeamUpdated June 2026Category: Finance CalculatorsFormula, example and assumptions shown
Practical Guide

How to use this result well

Use this VAT calculator to add VAT to a net price or remove VAT from a gross price. It is useful for invoices, ecommerce pricing, receipts and quick UK tax checks.

What the result means

The net amount is the price before VAT, the VAT amount is the tax portion, and the gross amount is the customer-facing total including VAT.

Common mistakes to avoid

  • Subtracting the VAT rate directly from a VAT-inclusive total
  • Mixing up net and gross prices on invoices
  • Using the wrong VAT rate for the product, service or country

When to double-check

Double-check the result when money, employment rights, borrowing, tax, health or official paperwork depends on the number. CalcBeacon is designed to make the maths clearer, not to replace professional judgement.

Frequently asked questions

How do I add 20% VAT?

Multiply the net price by 1.20. For example, £50 becomes £60.

How do I remove 20% VAT from a gross price?

Divide the gross price by 1.20 to get the net price, then subtract the net price from the gross price to find VAT.

Is this VAT calculator tax advice?

No. It is a calculation tool. Check official guidance or speak to an accountant for VAT registration, exemptions or complex business decisions.

Flagship upgrade

Use the VAT result with pricing context

This calculator is most useful when you need to move quickly between net price, VAT amount, and gross total without doing manual percentage maths.

Best forInvoices and pricing checks
Common missAdding VAT to a gross price
Next toolMargin or profit analysis

Quick example

If your base price is £100 and VAT is 20%, the VAT amount is £20 and the gross total is £120. If £120 already includes VAT, you need the remove-VAT path instead.

  • Check whether your listed price already includes VAT before calculating.
  • Use the percentage calculator next if you want to sanity-check the tax rate.
  • Use a profit or margin calculator next to see the commercial impact.
Copied to clipboard