VAT & Sales Tax Calculator
Add tax to a net price or take it out of a gross price, at any rate.
| Net price (excl. tax) | |
| Tax (20%) | |
| Gross price (incl. tax) |
How it works
Adding tax: gross = net x (1 + rate). Removing tax: net = gross / (1 + rate), and the tax is gross minus net. If a quote says "plus VAT" or "excl. tax", add the tax on top. If it says "incl. VAT", the tax is already inside the price, so divide rather than subtract a percentage.
Setting prices for a shop? The profit margin calculator shows what you keep after costs and fees. For discounts and other percentages, use the percentage calculator.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by (1 + rate). At 20%, a net price of 100 becomes 100 x 1.20 = 120, of which 20 is VAT. The same works for sales tax: at 8%, 100 becomes 108.
How do I remove VAT from a price that already includes it?
Divide the gross price by (1 + rate), not subtract the rate. At 20%, 120 / 1.20 = 100 net, so the VAT is 20. A common mistake is taking 20% of 120 (which gives 24) and getting the wrong answer.
What VAT or sales tax rate should I use?
It depends on the country and the product. Standard VAT is 20% in the UK and France, 19% in Germany, 21% in the Netherlands and Spain, 25% in Sweden and Denmark, and 10% in many Asian countries. US sales tax is set by states and cities, usually somewhere between 0% and about 10%. Reduced rates often apply to food, books and other essentials.
Is VAT the same as sales tax?
They are calculated the same way at the till, but VAT is charged at each stage of the supply chain with businesses reclaiming the VAT they paid, while US sales tax is generally charged only on the final sale to the consumer.
Tax rates change and vary by product and location. Check the current rate with your local tax authority.