About this calculator
Use this VAT calculator to add VAT to a price before VAT (the net price), or to take VAT out of a price that already includes it (the gross price). Choose the standard 20% rate, the reduced 5% rate, zero-rated, or type your own rate for another country.
You get the net price, the VAT and the gross price together, so you can copy whichever figure your invoice or quote needs.
Worked examples
Real numbers, worked out by the same calculator. Press “Use these numbers” to try one above.
Add 20% VAT to £100
- Price including VAT
- £120.00
- Price excluding VAT
- £100.00
- VAT at 20%
- £20.00
£100.00 plus 20% VAT (£20.00) is £120.00.
Take 20% VAT out of £120
- Price excluding VAT
- £100.00
- VAT at 20%
- £20.00
- Price including VAT
- £120.00
£120.00 includes 20% VAT of £20.00, so the price before VAT is £100.00.
Add 5% VAT to £250
- Price including VAT
- £262.50
- Price excluding VAT
- £250.00
- VAT at 5%
- £12.50
£250.00 plus 5% VAT (£12.50) is £262.50.
How to add and remove VAT
To add VAT, multiply the net price by 1 plus the rate. At 20% that means multiplying by 1.2. A £100 price becomes £120, of which £20 is VAT.
To remove VAT, divide the gross price by 1 plus the rate. At 20% that means dividing by 1.2. A £120 price becomes £100, and the VAT is the £20 difference.
A handy shortcut at the 20% rate: the VAT inside a gross price is exactly one sixth of it. £120 ÷ 6 = £20. At 5%, it's one twenty-first.
The mistake that costs people money
Do not take 20% off a price that includes VAT. £120 × 0.8 = £96, not £100. That's because the 20% VAT was worked out on the £100 net price, not on the £120 gross price. Always divide by 1.2, never multiply by 0.8.
The same trap works in the other direction. Adding 20% and then taking 20% off doesn't get you back to where you started.
UK VAT rates
The UK has three VAT rates: a standard rate of 20% for most goods and services, a reduced rate of 5% for a few things such as domestic fuel, and a zero rate for things like most food and children's clothes. Which rate applies depends on what you're selling, not on who you're selling to. Check the current rules on GOV.UK's VAT rates page before you rely on a rate.
Frequently asked questions
How do I calculate VAT on a price?
Multiply the price before VAT by 0.2 to get the VAT at 20%, or by 1.2 to get the total including VAT. For 5%, use 0.05 and 1.05.
How do I take VAT out of a price?
Divide the price including VAT by 1.2 (at 20%). The answer is the price before VAT. Subtract it from the total to find the VAT itself.
What's the difference between net and gross?
Net is the price before VAT is added. Gross is the price after VAT. A £100 net price at 20% VAT is a £120 gross price.
Can I use this for VAT in other countries?
Yes. Choose “Other rate…” and type the rate. The maths is the same everywhere, but rounding rules and rates differ by country, so check local guidance for official invoices.
Is this tax advice?
No. It's a calculator that does the arithmetic. For questions about registration, which rate applies, or how to round invoice totals, check GOV.UK or ask your accountant.
Formulas tested against hand-worked answers. Last reviewed 29 September 2026. These calculators do arithmetic only; they are not financial, tax or legal advice.