VAT Calculator
Add VAT to a net price or take it out of a price that already includes it. Choose the rate that applies to you; the calculator works with any percentage.
Price with VAT
120.00
Check the highlighted fields to see your result.
- VAT amount
- 20.00
- Price without VAT
- 100.00
Results are estimates for information only and do not constitute financial, medical, or legal advice.
How VAT works
VAT (value-added tax) is a percentage added on top of the net price of a product or service. The price you pay is the net price plus the tax. To find the net price from a total that already includes VAT, you divide by (1 + rate); you can't just subtract the percentage, because the tax was calculated on the smaller, net amount.
The formulas
Total = net × (1 + rate ÷ 100)
Net = total ÷ (1 + rate ÷ 100)
Worked example
A product costs 250 before tax and the VAT rate is 16%.
- VAT: 250 × 0.16 = 40.00
- Total: 250 + 40 = 290.00
- The other way around: 290 ÷ 1.16 = 250.00 net, and 290 − 250 = 40.00 of VAT.
Subtracting 16% of 290 (290 − 46.40 = 243.60) would be a common mistake.
Frequently asked questions
Why can't I just subtract the VAT percentage?
Because the VAT was calculated on the net price, not on the total. With 20% VAT, a price of 120 includes 20 of tax: 120 ÷ 1.20 = 100. Subtracting 20% of 120 would give 96, which is wrong.
Which VAT rate should I use?
It depends on the country and the product. Most countries have a standard rate and one or more reduced rates, for example for food or books. Check your country's tax authority for the rate that applies.
Does it work for US sales tax?
Yes, to add it. Enter your combined state and local sales tax rate and choose "Add VAT to a price." In the US, sales tax is usually added at checkout instead of being included in the price on the shelf.