Finance

VAT Calculator

Add or remove VAT from a price in either direction.


VAT Calculator

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Unlike US sales tax, which is added at checkout, VAT is baked into the price shown almost everywhere else in the world — so the question people actually have is often the reverse of what a sales-tax calculator answers: how much of this price I’m already looking at is VAT?

How it works

Adding VAT multiplies the exclusive price by (1 + rate). Removing VAT divides the inclusive price by the same factor. Both directions agree with each other exactly — the VAT amount computed by adding is identical to the VAT amount computed by removing, on the same underlying transaction.

What this does not include

VAT rates vary by country and often by category of goods within a country (reduced rates, zero rates, exemptions) — this calculator takes the rate as a direct input rather than assuming any one country’s schedule, since no single rate applies everywhere.

How to use this calculator

  1. Choose whether your amount already includes VAT or not.
  2. Enter the amount and the VAT rate that applies.

Frequently asked questions

What’s the standard VAT rate in the UK?

20%, per GOV.UK’s own published rates — the default this calculator starts with, though it can be changed for any other rate or country.

Why isn’t VAT just “20% of the inclusive price”?

Because 20% of the inclusive price overstates the VAT — the rate applies to the exclusive price, so removing VAT correctly means dividing by 1.20, not multiplying by 0.20.

Does this work for reduced or zero VAT rates?

Yes — enter whatever rate applies, including 0%, and the calculator handles it the same way.

Important: This is general information, not financial advice. Figures are estimates, and your lender or provider decides the real numbers. Check with a qualified adviser before acting on them.

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Written by

M. Whitfield

Personal finance writer

M. Whitfield writes the personal finance calculators, covering loans, mortgages, savings, tax and investment maths. The focus is on showing exactly which number goes into a formula and which assumptions a result depends on, so readers can tell when a figure applies to their situation and when it does not. Every finance page states what it does not account for as plainly as what it does.

Reviewed by

A. Whitfield-Reyes

Calculator reviewer — finance

A. Whitfield-Reyes reviews the finance calculators, checking compounding conventions, rate-period alignment, and whether each page is explicit about the costs and tax treatment it leaves out. Financial results are easy to state with false precision, so review focuses on whether the page makes its assumptions visible to a reader who is not looking for them.

How we write and review

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