Vat Vat Calculator – Cost Calculator | Online Quote & Profit Estimator

VAT Calculator

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is based on the cost of the product, excluding the VAT itself. Businesses typically add VAT to their selling price and then remit it to the government. Understanding how to calculate VAT, both when adding it to a net price and when extracting it from a gross price, is crucial for businesses and consumers alike.

Calculate VAT and Gross Amount from Net Price

Net Amount (before VAT):

VAT Rate (%):

VAT Amount:

Gross Amount (with VAT):

Calculate Net Amount and VAT from Gross Price

Gross Amount (with VAT):

VAT Rate (%):

Net Amount (before VAT):

VAT Amount:

Understanding VAT Calculations

VAT rates vary significantly by country and even by product category within a country. For instance, the standard VAT rate in the UK is 20%, while in Germany it's 19%, and in some countries, it can be much higher or lower. Some goods and services may also be subject to reduced rates or be entirely exempt from VAT.

Calculating VAT from a Net Price:

When you have a price before VAT (Net Price) and want to add VAT to find the Gross Price, the calculation is straightforward:
VAT Amount = Net Price × (VAT Rate / 100)
Gross Price = Net Price + VAT Amount
Or, more simply:
Gross Price = Net Price × (1 + VAT Rate / 100)

Example: If a product costs £100 (Net Price) and the VAT rate is 20%:
VAT Amount = £100 × (20 / 100) = £20
Gross Price = £100 + £20 = £120

Calculating Net Price and VAT from a Gross Price:

Sometimes you have a price that already includes VAT (Gross Price) and need to find out the original Net Price and the VAT amount. This is often referred to as "reverse VAT calculation" or "VAT extraction":
Net Price = Gross Price / (1 + VAT Rate / 100)
VAT Amount = Gross Price - Net Price

Example: If a product costs £120 (Gross Price) and the VAT rate is 20%:
Net Price = £120 / (1 + 20 / 100) = £120 / 1.20 = £100
VAT Amount = £120 – £100 = £20

This calculator helps you quickly perform both types of VAT calculations, ensuring accuracy for your financial planning, invoicing, or budgeting. Always double-check the applicable VAT rate for your specific goods or services and region.