Small business calculator
VAT calculator
Last updated: .
Add VAT to a price, or work out how much VAT is inside a VAT-inclusive price, with a clear breakdown of the net amount, VAT and gross total. The UK standard rate is 20%.
Illustrative only, not financial advice. Results depend entirely on the figures you enter. Figures filled in below are labelled “Example figure” — they aren’t live rates, offers or recommendations.
Work out VAT
Your illustrative results
- Net amount
- –
- VAT
- –
- Gross amount
- –
The price before VAT.
The VAT part of the price.
The price including VAT.
How this VAT calculator works
Adding VAT multiplies the net amount by one plus the rate. Removing VAT divides the gross amount by one plus the rate — a common mistake is to take 20% off the gross price, which gives the wrong answer. Results are rounded to the penny; invoices with many lines may round slightly differently.
Things to check
- Which VAT rate applies to what you sell — rates depend on the goods or service.
- Whether you need to register for VAT and which scheme you use — see business tax and HMRC.
- How VAT shows on your invoices — see invoicing and payments.
The formulas we use
Add VAT (20%): Gross = Net × 1.2; VAT = Gross − Net.
Remove VAT (20%): Net = Gross ÷ 1.2; VAT = Gross − Net.
For other rates: Gross = Net × (1 + rate) and Net = Gross ÷ (1 + rate) — for example × 1.05 or ÷ 1.05 at 5%.
UK VAT rates
The standard rate is 20%, the reduced rate is 5% (for example home energy) and some goods are zero-rated (for example most food and children’s clothes). Some things are exempt from VAT altogether (source: GOV.UK VAT rates, checked 3 October 2026).
FAQ
How do I remove 20% VAT from a price?
Divide the VAT-inclusive price by 1.2. For £120, that’s £100 net and £20 VAT. Taking 20% off £120 would give the wrong answer (£96).
What’s the difference between zero-rated and exempt?
Zero-rated goods are VATable at 0%. Exempt goods and services are outside VAT altogether. The difference matters for businesses reclaiming VAT.
Can I use this for invoices?
It’s a quick check. Your accounting software and HMRC guidance set the rules for rounding and invoicing.
Does this calculator store my figures?
No. Everything is worked out in your browser and nothing is stored or sent anywhere.
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