This VAT rate calculator allows you to both add VAT to a net price and remove VAT from a gross total using any rate. It is one of the most flexible VAT tools for pricing, accounting, ecommerce and financial analysis.
Whether you are working with VAT-exclusive pricing (net) or VAT-inclusive pricing (gross), this calculator ensures accurate results using the correct formulas. It supports standard UK VAT rates (20%, 5%, 0%) as well as custom rates for international or specialised use cases.
Understanding VAT correctly is essential for maintaining profit margins, validating invoices, and making informed pricing decisions. This tool helps you avoid costly errors and ensures your financial calculations are accurate.
The result changes depending on your selected mode. When adding VAT, the calculator shows the VAT amount and final gross price. When removing VAT, it separates the total into net revenue and tax.
This allows you to instantly switch between customer-facing pricing and business-level revenue analysis, helping you understand the real financial impact of VAT.
Add VAT: Gross = Net × (1 + rate ÷ 100)
Remove VAT: Net = Gross ÷ (1 + rate ÷ 100)
VAT is always calculated from the net value. This is why removing VAT requires division rather than subtraction, which is a common mistake.
This calculator is especially useful for businesses managing pricing across different channels. For example, ecommerce platforms often display VAT-inclusive prices, while internal accounting works with net values.
If you do not correctly convert between net and gross, your profit calculations can be inaccurate. For instance, a £120 sale at 20% VAT only generates £100 in revenue before costs.
Using this tool helps ensure that your pricing, discounts, and advertising decisions are based on accurate financial data, protecting your margins and improving long-term profitability.
Add VAT:
£200 at 20% → £240 total
Remove VAT:
£240 → £200 net + £40 VAT
Multiply by (1 + VAT rate).
Divide by (1 + VAT rate).
Yes, this calculator supports any rate.