This free VAT calculator works out UK VAT on any amount in a single step. Enter a figure, choose whether to add VAT or remove it, and the tool returns the net amount, the VAT, and the gross total at the standard 20% rate or the reduced 5% rate. The guide below shows exactly how each figure is worked out by hand, so you can check any result the calculator gives you.
How To Use This VAT Calculator
The calculator works out VAT in four quick steps, and results update as you type.
- Enter your amount. Type any figure in pounds, either a net price that excludes VAT or a gross price that includes it.
- Choose add or remove. Select Add VAT to put tax on top of a net price, or Remove VAT to take tax out of a gross price.
- Set the rate. Leave it on the standard 20% rate, or switch to the reduced 5% rate, the zero rate, or a custom rate for other cases.
- Read the breakdown. The calculator shows the net amount, the VAT, and the gross total, and you can copy the results in one click for an invoice or a return.
How To Add VAT To A Price
To add VAT to a net price, multiply the amount by 1.20 at the standard 20% rate. The net price is the figure before VAT, and multiplying by 1.20 gives you the gross price with VAT included. If you only need the VAT itself, multiply the net amount by 0.20.
Adding VAT (net to gross): gross = net × 1.20
A net price of £100 becomes £100 × 1.20 = £120 gross, and the VAT added is £20.
The same method works at any rate: swap 1.20 for the rate you need. Adding VAT is the calculation you use when you hold a price that excludes tax, such as a supplier quote, and you want the total a customer will pay.
How To Remove VAT From A Price (Reverse VAT)
To remove VAT from a gross price, divide the amount by 1.20 at the standard 20% rate. This is often called reverse VAT or working out VAT backwards, because you start with the tax-inclusive total and recover the net price underneath it. The VAT is the difference between the two figures.
Removing VAT (gross to net): net = gross ÷ 1.20
A gross price of £120 becomes £120 ÷ 1.20 = £100 net, so the VAT contained in the price is £20.
Removing VAT is what you need when a price already includes tax, such as a shop receipt or an invoice total, and you want the net value for your records or a VAT return.
Common mistake: do not subtract 20% to remove VAT. Taking 20% off a gross price gives the wrong answer, because the 20% was originally added to the smaller net figure, not the larger gross one. On a £600 gross price, subtracting 20% gives £480, which is too low. The correct net is £600 ÷ 1.20 = £500, and the VAT is £100.
The VAT Fraction: One Sixth Of The Gross
The VAT fraction at 20% is one sixth, so the VAT inside any gross price equals the gross divided by 6. This is a quick way to pull the VAT out of a tax-inclusive total without dividing by 1.20 first. The fraction comes from the rate itself: 20 divided by 120 reduces to one sixth.
VAT from a gross price: VAT = gross ÷ 6
On a £120 gross price, the VAT is £120 ÷ 6 = £20, which matches the £20 you get by the longer method.
How To Calculate VAT At The Reduced 5% Rate
At the reduced 5% rate, multiply the net price by 1.05 to add VAT, or divide the gross price by 1.05 to remove it. The reduced rate applies to a limited set of goods and services rather than most purchases, so it is worth confirming which items qualify before you use it. The VAT fraction at 5% is one twenty-first, meaning the VAT in a gross figure equals the gross divided by 21.
Reduced rate: gross = net × 1.05, and net = gross ÷ 1.05
A net price of £100 becomes £105 gross, and the VAT added at 5% is £5.
The calculator handles the reduced rate when you select it, and you can read which supplies fall under the reduced and zero rates on the UK VAT rates page.
VAT-Inclusive And VAT-Exclusive Prices
A VAT-exclusive price is the net amount, and a VAT-inclusive price is the gross amount. The difference matters because it tells you whether VAT still needs to be added or has already been included. A price quoted exclusive of VAT will have tax added on top, while a price quoted inclusive of VAT already contains it.
Business-to-business quotes are usually shown exclusive of VAT, so the buyer adds the tax to reach the total. Consumer prices in shops are shown inclusive of VAT, so the figure on the label is the gross amount you pay. When you use this calculator, choosing to add VAT treats your figure as VAT-exclusive, and choosing to remove VAT treats it as VAT-inclusive.
Net And Gross: Converting In Both Directions
Converting between net and gross is the same pair of calculations seen from two sides. To go from a net figure to a gross figure you add VAT, multiplying by 1.20. To go from a gross figure back to a net figure you remove VAT, dividing by 1.20. The calculator moves in either direction depending on the mode you pick.
Knowing which figure you are starting from is the key step, and the meaning of each term is explained in full on the what is VAT page. In short, net comes before VAT and gross comes after it, so a net-to-gross conversion always produces a larger number and a gross-to-net conversion always produces a smaller one.
How To Work Out VAT By Hand
You can work out VAT on any basic calculator without the tool. To add VAT at the standard rate, key in the net amount and multiply by 1.2 for the gross, or multiply by 0.2 for the VAT on its own. To remove VAT, key in the gross amount and divide by 1.2 for the net, then subtract the net from the gross to see the VAT.
These are the exact steps this VAT calculator runs for you, so the results match whether you use the tool or a handheld calculator. The only thing that changes at a different rate is the multiplier: use 1.05 for the reduced 5% rate in place of 1.2.
How VAT Is Rounded
VAT amounts are normally shown to the nearest penny. Where a calculation lands on a fraction of a penny, the standard approach is to round to the nearest whole penny: a fraction of 0.5p or more rounds up, and less than 0.5p rounds down. On single prices the effect is tiny, often a penny either way.
HMRC also allows a long-standing concession in VAT Notice 700 for invoice traders, who may round the total VAT on an invoice down to the nearest whole penny. Retailers using a retail scheme follow separate rules. For everyday calculations on this page, rounding to the nearest penny gives the figure you need.
Worked VAT Examples
The tables below show common amounts at the standard 20% rate, in both directions. The first adds VAT to a net price to reach the gross, and the second removes VAT from a gross price to recover the net.
Adding VAT At 20%
| Net amount | VAT at 20% | Gross amount |
|---|---|---|
| £50 | £10 | £60 |
| £100 | £20 | £120 |
| £250 | £50 | £300 |
| £500 | £100 | £600 |
| £1,000 | £200 | £1,200 |
Removing VAT At 20%
| Gross amount | VAT at 20% | Net amount |
|---|---|---|
| £60 | £10 | £50 |
| £120 | £20 | £100 |
| £300 | £50 | £250 |
| £600 | £100 | £500 |
| £1,200 | £200 | £1,000 |
VAT Calculator FAQs
How do I add VAT to a price?
To add VAT, multiply the net price by 1.20 at the standard 20% rate. A net price of £100 becomes £120 gross, and the VAT added is £20. To find the VAT on its own, multiply the net amount by 0.20.
How do I remove VAT from a gross price?
To remove VAT, divide the gross price by 1.20 at the standard 20% rate. A gross price of £120 becomes £100 net, so the VAT contained in the price is £20. You can also find the VAT directly by dividing the gross by 6.
Is VAT always 20%?
The standard UK VAT rate is 20% and applies to most goods and services. A reduced rate of 5% applies to items such as domestic energy, and a zero rate of 0% applies to items such as most food and children’s clothes. You can select the rate you need in the calculator.
What is the VAT fraction?
The VAT fraction at the 20% rate is one sixth, so the VAT inside a gross price equals the gross divided by 6. At the 5% reduced rate the fraction is one twenty-first, so the VAT equals the gross divided by 21.
How do I work out VAT backwards?
Working out VAT backwards means removing it from a gross, tax-inclusive figure. Divide the gross price by 1.20 at the standard rate to get the net price, then subtract the net from the gross to see the VAT. This is the same as reverse VAT.
What is the difference between net and gross?
Net is the price before VAT, and gross is the price after VAT has been added. A net-to-gross conversion adds VAT and produces a larger figure, while a gross-to-net conversion removes VAT and produces a smaller one.
Why is subtracting 20% wrong when removing VAT?
Because the 20% was added to the smaller net figure, not the larger gross figure, so taking 20% off the gross removes too much. On a £600 gross price the correct net is £500, found by dividing by 1.20, not £480.