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VAT Calculator: Net, VAT and Gross Prices
Start from whichever figure you have: the net price, the gross price including VAT, or the VAT amount itself. Enter the rate and the other two figures appear, with the working.
The three VAT relationships
Value-added tax is charged as a percentage of the net price. Net, VAT and gross are tied together by two equations, so any one of them with the rate gives the other two.
| You have | Net | VAT | Gross |
|---|---|---|---|
| Net | net | net × rate | net × (1 + rate) |
| Gross | gross ÷ (1 + rate) | gross − net | gross |
| VAT | VAT ÷ rate | VAT | net + VAT |
Here the rate is written as a decimal, so 15% is 0.15. For the default worked example, 1,150 ÷ 1.15 gives a net price of 1,000 and VAT of 150.
The VAT fraction shortcut
When you hold a gross figure, the VAT inside it is gross × rate ÷ (100 + rate). This is sometimes called the VAT fraction. At the illustrative rates below you can read it straight off, which is handy for checking a receipt in your head.
| Example rate | VAT fraction of gross |
|---|---|
| 5% | 1/21 |
| 10% | 1/11 |
| 15% | 3/23 |
| 20% | 1/6 |
These rates are only examples to show the pattern. They are not statements about any country's current rates, which differ and change.
Why businesses track net and VAT separately
In a VAT system a registered business usually charges VAT on its sales (output VAT) and may deduct the VAT it paid on business purchases (input VAT), paying over only the difference. Because of this, the net figure is the true revenue or cost, while the VAT is a pass-through amount held for the tax authority. Invoices therefore list net, VAT and gross as separate lines.
Whether you can reclaim input VAT, which supplies are exempt or zero-rated, and how often returns are filed all depend on local law and on your registration status. Check the rules where you operate before relying on any single figure here.
Common errors to avoid
- Subtracting the percentage from a gross price. Taking 20% off 120 gives 96, but the net price is 100. Always divide by one plus the rate.
- Applying VAT to a price that already contains it. Check whether a quoted price is described as inclusive or exclusive before adding anything.
- Using the wrong rate for the item. Different goods and services can carry different rates, and a single invoice may mix them. Calculate each line with its own rate.
- Rounding too early. Round VAT on the invoice total or per line as your jurisdiction requires, not at every intermediate step.
This calculator gives arithmetic estimates and is not tax advice. For a simpler tax added at the point of sale, try the sales tax calculator.
Worked example
An invoice total of 1,150 includes VAT charged at 15%. How much of it is VAT and what was the net price?
Inputs
| The amount I have is | Gross (includes VAT) |
|---|---|
| Amount | 1150 |
| VAT rate | 15 % |
Result
Net 1,000.00 plus VAT at 15% gives gross 1,150.00.
| Net amount (excluding VAT) | 1,000.00 |
|---|---|
| VAT amount | 150.00 |
| Gross amount (including VAT) | 1,150.00 |
| VAT as a share of the gross amount | 13.04% |
| Multiplier from net to gross | 1.1500 |
- To go from gross to net, divide by the multiplier. Do not subtract the rate from the gross amount.
Financial disclaimer: Results are estimates for planning and education. They are not financial, tax or legal advice. Fees, taxes, rates and rules vary by lender, product and country, so confirm figures with your provider or a qualified adviser before making decisions.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by one plus the VAT rate as a decimal. At a 20% rate, a net price of 100 becomes 120.
How do I take VAT out of a gross price?
Divide the gross price by one plus the rate as a decimal. The difference between gross and the result is the VAT. For 120 at 20%, the net is 100 and the VAT is 20.
What if I only know the VAT amount?
Divide the VAT amount by the rate as a decimal to get the net price, then add the two for the gross. This needs a rate above zero.
Is this the same as GST?
The arithmetic is identical for any tax charged as a percentage of the net price, including goods and services tax. Enter the rate that applies in your country.
Does the calculator know my country's rate?
No. Rates vary and change, so you enter the one that applies. Find it from your tax authority or a recent invoice.
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References and sources
- OECD, Consumption Tax Trends: describes VAT and goods and services tax systems and how they operate. Link
- Your national tax authority sets the VAT rates, registration thresholds and invoice rules for your country.