VAT Calculator

Add VAT to any price in seconds.

Result

$299.88
$49.98
$249.90

How it is calculated

You enter a net price (the price before tax) and a VAT rate in percent. The tool works out the tax and adds it: VAT = net × rate ÷ 100 and gross = net × (1 + rate ÷ 100). It shows the gross price, the VAT amount and your net price back, all in dollars with two decimals. The rate is not built in, because VAT rates differ by country and often by type of goods or service, so you must type the rate that applies to your sale. The tool only goes from net to gross. To find the net price inside a price that already includes VAT, you would need to divide by 1 + rate ÷ 100, which this tool does not do. Negative prices or rates give no result.

Worked example

An item costs 249.90 before tax and the VAT rate is 20%. VAT: 249.90 × 20 ÷ 100 = 49.98. Gross price: 249.90 + 49.98 = $299.88. The same figure comes from 249.90 × 1.20. The VAT part of the final price is $49.98 and the rest, $249.90, is the net amount that stays with the seller before their own costs.

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Common mistakes

  • Entering a price that already includes VAT in the net price field. The tool then adds tax a second time and the gross price is too high.
  • Trying to remove VAT by subtracting the rate from a gross price. 20% of 299.88 is not the VAT; the VAT in it is 299.88 − 299.88 ÷ 1.20 = 49.98, because the rate applies to the net price.
  • Typing the rate as 0.20 instead of 20. The field expects a percentage, so 0.20 would mean 0.2% VAT.
  • Using one rate for everything. Reduced, standard and zero rates can apply to different items in the same country, so use the rate of the actual product or service.

Sources

About this calculator

This general-purpose calculator adds value-added tax to a base (net) price, letting the user set whichever rate applies to their situation rather than assuming one fixed figure. Because VAT systems vary by country and by category of goods or service, the rate is treated as an input rather than something built into the tool.

It's used internationally by freelancers and small business owners issuing invoices correctly, by shoppers working out what a pre-tax price will cost once tax is added, and by anyone comparing prices across countries with different tax systems. To work backwards from a tax-inclusive price, divide it by 1 plus the rate (for example 1.20 at 20%).

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Comments (1)

  • Editorial team

    A round trip is a quick way to confirm a figure you were given. If a supplier quotes a gross price, divide it by 1 plus the rate yourself, then type that net amount in here and check that the gross comes back to the quoted figure. With 249.90 net at 20 the tool returns 299.88 gross and 49.98 of VAT. Goods taxed at a zero rate can be entered with a rate of 0. Which rates do you most often need to check?

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