Percentages
VAT calculator
Enter a price and VAT rate to add VAT, or tick the box if your price already includes VAT to find the net amount and the VAT.
How to calculate it
VAT (Value Added Tax) is a percentage added to the price of most goods and services. Adding VAT multiplies the price by 1 plus the rate as a decimal: at the UK standard rate of 20%, a £100 price becomes £120. If a price already includes VAT and you want to find the amount before VAT, divide by 1 plus the rate instead of multiplying — dividing £120 by 1.20 gives back £100.
Worked examples
| Example | Working | Answer |
|---|---|---|
| £100 + 20% VAT | 100 × 1.20 | £120.00 |
| £50 + 5% VAT | 50 × 1.05 | £52.50 |
| £120 including 20% VAT | 120 ÷ 1.20 | £100.00 net |
| £75 + 20% VAT | 75 × 1.20 | £90.00 |
| £19.99 + 20% VAT | 19.99 × 1.20 | £23.99 |
| £240 including 20% VAT | 240 ÷ 1.20 | £200.00 net |
Frequently asked questions
What is the UK VAT rate?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services, such as home energy, and a zero rate of 0% applies to items including most food, books, and children’s clothes. Enter whichever rate applies to what you are calculating.
How do I remove VAT from a price that already includes it?
Tick “Price already includes VAT”. The calculator then divides by 1 plus the rate instead of multiplying, giving you the net price before VAT and the VAT amount.
Why do I divide by 1.20 instead of just taking off 20%?
Taking 20% off a VAT-inclusive price overcorrects, because that 20% was originally calculated on the smaller net price, not the larger VAT-inclusive one. Dividing by 1.20 correctly reverses the calculation that added the VAT in the first place.
Does this work for other countries’ VAT or sales tax rates?
Yes. Enter whichever rate applies; the calculation is the same regardless of country. Sales tax in some countries, including the United States, is usually calculated and displayed differently at the till, so check local rules before relying on this for a specific transaction.
How are the results rounded?
Amounts are rounded to two decimal places, matching how prices are normally shown. For very precise accounting figures, keep more decimal places until the final step.
Method: standard arithmetic. Examples are illustrative. How our calculators work.