Plot No. 10 · Everyday & Shopping
VAT Calculator
Add VAT to a net price or strip VAT out of a gross price in seconds. Set the rate to 20% for the UK standard rate, or adjust it for reduced-rate and other-country rates.
The UK standard VAT rate is 20%, with a reduced rate of 5% on some goods and services. Change the rate above to match your situation.
The link saves your inputs so you can bookmark or share this exact result.
Adding VAT at 20%: what each amount plus VAT comes to
"Plus VAT" means the price you have been quoted is the net figure and the tax still has to go on top. At the 20% standard rate the shortcut is to multiply by 1.2, because adding a fifth is the same as taking 120% of the original. So 120 plus VAT is £144.00 and 16,000 plus VAT is £19,200.00. Any amount works in the calculator above; these are the ones people look up most.
| Net amount | VAT at 20% | Gross (amount plus VAT) |
|---|---|---|
| £10.00 | £2.00 | £12.00 |
| £20.00 | £4.00 | £24.00 |
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £120.00 | £24.00 | £144.00 |
| £150.00 | £30.00 | £180.00 |
| £200.00 | £40.00 | £240.00 |
| £250.00 | £50.00 | £300.00 |
| £500.00 | £100.00 | £600.00 |
| £750.00 | £150.00 | £900.00 |
| £1,000.00 | £200.00 | £1,200.00 |
| £1,500.00 | £300.00 | £1,800.00 |
| £2,000.00 | £400.00 | £2,400.00 |
| £5,000.00 | £1,000.00 | £6,000.00 |
| £10,000.00 | £2,000.00 | £12,000.00 |
| £16,000.00 | £3,200.00 | £19,200.00 |
Removing VAT: the net and VAT inside a gross price
Going the other way is a division, not a subtraction. Taking 20% off a £120.00 gross price gives £96.00, which is wrong, because the tax was charged on the smaller net figure rather than on the gross one. Divide by 1.2 instead and you get the correct £100.00 net with £20.00 of VAT inside it. Net plus VAT always ties back to gross, which is the check to run on any invoice.
| Gross amount (VAT included) | Net (before VAT) | VAT at 20% |
|---|---|---|
| £100.00 | £83.33 | £16.67 |
| £120.00 | £100.00 | £20.00 |
| £150.00 | £125.00 | £25.00 |
| £200.00 | £166.67 | £33.33 |
| £500.00 | £416.67 | £83.33 |
| £1,000.00 | £833.33 | £166.67 |
| £1,200.00 | £1,000.00 | £200.00 |
| £2,000.00 | £1,666.67 | £333.33 |
| £5,000.00 | £4,166.67 | £833.33 |
| £10,000.00 | £8,333.33 | £1,666.67 |
| £16,000.00 | £13,333.33 | £2,666.67 |
| £19,200.00 | £16,000.00 | £3,200.00 |
The three UK VAT rates on the same £1,000
The rate depends on what is being sold, not on who is buying it. Most things carry the 20% standard rate, which has been unchanged since January 2011. Zero-rated is not the same as exempt: zero-rated sales still count as taxable, so a business making them can register and reclaim the VAT on its own costs. Set the rate field in the calculator to match the items you are pricing.
| Rate | VAT on £1,000 | Gross | Typically applies to |
|---|---|---|---|
| Standard (20%) | £200.00 | £1,200.00 | Most goods and services |
| Reduced (5%) | £50.00 | £1,050.00 | Domestic energy, child car seats, some home improvements |
| Zero (0%) | £0.00 | £1,000.00 | Most food, books, newspapers, children's clothes |
Figures are calculated from the rate itself rather than typed in, so they match the calculator exactly. VAT is a UK tax; for US state and local rates use the sales tax calculator, and to work a rate change or any other percentage the percentage calculator covers the general case.
How adding and removing VAT works
Value added tax can be calculated in two directions, and this tool does both. In add mode it treats your amount as a net price, multiplies it by the rate to find the VAT, and adds it to give the gross price. In remove mode it treats your amount as a gross price that already includes VAT and divides it by one plus the rate to recover the net price, with the difference being the VAT.
Getting the direction right matters. Removing VAT is not the same as taking the rate off the gross figure, because the VAT was charged on the smaller net amount, not on the gross. The tool handles that division for you.
How to use the VAT calculator
- Choose add VAT to go from a net price to a gross price, or remove VAT to go the other way.
- Enter the amount, which is the net figure in add mode or the gross figure in remove mode.
- Set the VAT rate, then read the VAT amount, the net price and the gross price.
Worked examples
Adding 20 percent VAT to 100
Inputs: Add mode, amount 100, rate 20 percent.
Result: VAT of 20, a net price of 100 and a gross price of 120.
Removing 20 percent VAT from 120
Inputs: Remove mode, amount 120, rate 20 percent.
Result: A net price of 100 and VAT of 20, recovered by dividing 120 by 1.2 rather than subtracting 20 percent.
Limitations and common mistakes
Edge cases and limitations
- The default 20 percent is the UK standard rate. The reduced rate is 5 percent and some items are zero-rated, so set the rate to match what you are pricing.
- Figures are shown to two decimal places, so a long division may round at the penny.
- It assumes a single rate across the whole amount and does not split a mixed-rate basket of items.
Common mistakes
- Removing VAT by subtracting the rate from the gross price. Dividing by one plus the rate is the correct method.
- Leaving the mode on add when you actually have a VAT-inclusive price, which inflates the result.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by the VAT rate to get the VAT amount, then add it on. At 20%, a net price of £100 has £20 of VAT, giving a gross price of £120.
How do I remove VAT from a gross price?
Divide the gross price by 1 plus the rate as a decimal. At 20% you divide by 1.2, so a £120 gross price has a net value of £100 and £20 of VAT.
What is the current UK VAT rate?
The UK standard rate is 20%. A reduced rate of 5% applies to items such as home energy, and some goods are zero-rated. Set the rate field to match the items you are pricing.
What is 120 plus VAT?
£144. At the 20% standard rate the VAT on £120 is £24, so the gross price is £120 plus £24. The shortcut for any number is to multiply by 1.2, because adding 20% is the same as taking 120% of the original. So 200 plus VAT is £240, 1,000 plus VAT is £1,200 and 16,000 plus VAT is £19,200.
What do net, VAT and gross mean on an invoice?
Net is the price before VAT, VAT is the tax added on top, and gross is what the customer actually pays. The three always tie together as net plus VAT equals gross. An invoice for £1,000 net at 20% shows £200 of VAT and a £1,200 gross total. A VAT-registered buyer usually reclaims the VAT line, so the net figure is their real cost.
Why is removing VAT not the same as taking 20% off?
Because the 20% was charged on the smaller net figure, not on the gross one. Taking 20% off a £120 gross price gives £96, which is wrong. Dividing £120 by 1.2 gives the correct £100 net, and the VAT contained in it is £20. Subtracting the rate always understates the net figure, and the gap widens as the rate rises.
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