# VAT Calculator

> Add VAT to a net price or take it out of a VAT-inclusive price at any rate, and see the net amount, the VAT and the gross total.

Category: Business & tax · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/vat-calculator

Adding VAT multiplies the net price by (1 + rate). Removing it divides the gross price by (1 + rate); simply taking the rate off the gross price gives the wrong answer.

Also called: Reverse VAT calculator, Value added tax calculator.

## Inputs
- Amount (default 100)
- I want to (options: Add VAT, Remove VAT; default add)
- VAT rate (unit %; default 20)
- Currency

## Results
- VAT amount
- Net price (excluding VAT)
- Gross price (including VAT)
- VAT as a share of the gross price

## Formula

```
Add: Gross = Net × (1 + rate ÷ 100).  Remove: Net = Gross ÷ (1 + rate ÷ 100).  VAT = Gross − Net
```

Where:
- Net: price before VAT
- Gross: price including VAT
- rate: VAT rate in percent

## Worked example
1. VAT = 100 × 20 ÷ 100 = 20.
2. Gross = 100 + 20 = 120.
3. Going back: 120 ÷ 1.20 = 100, not 120 − 20% = 96.

**Result:** At 20%, a net price of 100 carries 20 of VAT, for 120 in total.

## What the result means

When you remove VAT from a gross price, the VAT is a smaller share of the gross than the rate itself: at 20% it is one sixth (16.67%) of the VAT-inclusive price.

## Assumptions and limits
- A single VAT rate applies to the whole amount.
- Rates, exemptions and reduced rates differ by country and by product; check your tax authority for the rate that applies.
- Rounding rules for invoices (per line or per invoice) can change the total by a cent or two.

## Questions

### Why can’t I just subtract 20% to remove VAT?

Because the VAT was 20% of the net price, not of the gross. From a gross of 120, 20% is 24, which would leave 96 instead of the correct 100. Divide by 1.20 instead.

### What is the VAT fraction?

It is the share of a VAT-inclusive price that is VAT: rate ÷ (100 + rate). At 20% that is 20/120 = 1/6; at 5% it is 5/105 = 1/21.

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Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/vat-calculator