This VAT calculator allows you to instantly add VAT, remove VAT, or calculate the VAT portion of any amount. It is designed for ecommerce sellers, business owners, accountants, and anyone working with UK pricing.
VAT plays a critical role in pricing accuracy and profitability. Whether you are setting product prices, preparing invoices, or analysing margins, understanding how VAT affects your numbers is essential. A small miscalculation can impact both compliance and profit.
This tool supports standard UK VAT rates (20%, 5%, 0%) as well as custom rates, giving you flexibility across different industries and scenarios. Use it to quickly validate pricing decisions and ensure your figures are correct before going live.
When you add VAT, the result shows the gross price — the final amount a customer pays. When you remove VAT, the result shows the net price — your revenue before tax.
The VAT-only result isolates the tax portion, helping you understand exactly how much of the price is tax versus income. This is particularly useful for accounting, reporting and pricing analysis.
Add VAT: Net × (1 + rate)
Remove VAT: Gross ÷ (1 + rate)
Removing VAT requires division, not subtraction. This is a common mistake that leads to incorrect pricing calculations.
VAT has a direct impact on pricing strategy and margin. If you set a price without considering VAT properly, your net revenue may be significantly lower than expected. This is especially important for ecommerce sellers and businesses running paid advertising.
For example, if you price a product at £100 including VAT, your actual revenue is only £83.33 at a 20% rate. If you then apply discounts, fees, or shipping costs, your remaining profit can shrink quickly.
Using this calculator before launching promotions or pricing changes helps you avoid underpricing and ensures your business remains profitable while staying compliant.
Add VAT:
£100 + 20% VAT → £120
Remove VAT:
£120 including VAT → £100 net
VAT only:
£100 at 20% → £20 VAT
Multiply the net price by (1 + VAT rate).
Divide the gross price by (1 + VAT rate).
The standard rate is 20%, with reduced rates of 5% and 0%.