VAT calculator: add or remove VAT (UK)

Enter an amount, choose the rate and instantly see the net amount, the VAT and the gross amount. The calculator works both ways: it adds VAT to a net price or removes VAT from a price that already includes it.

How to calculate VAT

VAT is always charged on the net amount, the price before VAT. Depending on which amount you have, use one of the two formulas below.

Adding VAT to a net amount

Net amount × 20% = VAT. Net amount × 1.20 = gross amount (at the standard rate).

Example: £100.00 × 0.20 = £20.00 VAT. Gross amount: £100.00 + £20.00 = £120.00.

Removing VAT from a gross amount

Gross amount ÷ 1.20 = net amount. The difference between the two is the VAT.

Example: £120.00 ÷ 1.20 = £100.00 net. VAT: £120.00 − £100.00 = £20.00.

How much of a gross price is VAT?

The rate applies to the net amount, not to the gross price. That is why 20% VAT makes up only 16.67% of the gross price. A common mistake is to deduct 20% from the gross price.

VAT rates in the UK

• 20% – standard rate for most goods and services.
• 5% – reduced rate, for example domestic fuel and power and children’s car seats.
• 0% – zero rate, for example most food, books and newspapers, and children’s clothes.

Some supplies are exempt from VAT altogether, such as most insurance and postage stamps. You can enter any other rate in the custom rate field of the calculator. For a specific case, check the guidance from HMRC on GOV.UK.

Rounding

The calculator rounds amounts to the nearest penny, i.e. two decimal places. The gross amount is always the sum of the rounded net amount and the rounded VAT, just as on an invoice.

Rates checked: October 2026. This calculator gives an indicative result and does not replace advice from an accountant.