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VAT Calculator

Add VAT or GST to a price before tax, or find the tax inside a price that already includes it, at any rate you enter.

Level: Grade 7

  • Common Core standard 7.RP.A.3Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.
Printable worksheet

VAT Calculator

Know the answer you need? Pick an input to work backward.

Inputs
I want to…

The net price (before VAT) or the gross price (including VAT), depending on the option above.

Result

Gross price (including VAT)

$300.00

$250.00 plus 20% VAT ($50.00) is $300.00.

VAT amount
$50.00
Net price (before VAT)
$250.00
VAT as a share of the gross price
16.6667%rate ÷ (100 + rate)

See the step-by-step solution ↓

Step-by-step solution

  1. Find the VAT: the price before tax times the VAT rate

    $250.00×20%=$50.00

  2. Add the VAT to the price before tax to get the full price

    $250.00+$50.00=$300.00

Test yourself

20 quick questions built from this calculator's formula: work out results, predict what happens when an input changes, and work backward from an answer. Every answer comes with the working.

Please note: Results are estimates for planning and comparison. Lenders, banks, and tax authorities may round differently or include fees not modeled here, so confirm figures with your provider before deciding.

What this calculator does

Add VAT to a price, or find how much VAT is already inside a price. Value-added tax (VAT) is called goods and services tax (GST) in some countries. It's a tax on spending, charged as a percentage of the price. Businesses quote two prices. The net price is the price before tax, and the gross price includes it. This calculator converts between them at whatever rate you enter.

VAT differs from US-style sales tax in where it's collected and how prices are shown. A US sales tax is charged once, at the register, on the final sale to the shopper. Shelf prices usually leave it out. VAT is collected at every step from maker to shop. Each business charges VAT on its sales and claims back the VAT it paid on its purchases. So in effect, each one pays tax only on the value it adds. For shoppers, VAT is usually already included in the price shown.

Where it's used

Why this math matters outside the classroom:

  • Adding VAT. Adding 20% VAT to a net price of €50 gives a gross price of €60.
  • Extracting VAT. A gross price of €120 at 20% VAT includes €20 of tax, because 20 ÷ 120 is one sixth.
  • Invoicing. Businesses show the net price, the VAT and the gross total as separate lines on an invoice.
  • Travel shopping. Visitors work out how much of a shop price is VAT when checking a refund form.

Grade level and standards: Grade 7; Common Core State Standards for Mathematics 7.RP.A.3. © Copyright 2010. National Governors Association Center for Best Practices and Council of Chief State School Officers. All rights reserved.

How to use it

  1. Choose what you're doing: adding VAT to a net price, or taking it out of a gross price.
  2. Enter the amount and the VAT or GST rate as a percent.
  3. Read the gross or net price, the VAT amount, and the share of the gross price that is tax.

What the inputs mean

I want to…
Add VAT when you have a price before tax, such as a supplier quote. Extract (take out) VAT when you have a price that already includes it, such as a receipt or a shelf price.
Amount
Any currency works. The dollar sign is only a label.
VAT or GST rate
The rate that applies to the goods or service. Many countries have a standard rate, plus reduced and zero rates for certain items. Check which one applies.

Formula and method

VAT = net × rate ÷ 100
gross = net × (1 + rate ÷ 100)
net = gross ÷ (1 + rate ÷ 100)
VAT in a gross price = gross × rate ÷ (100 + rate)

In the formulas, net is the price before tax, gross is the price with tax, and rate is the VAT rate as a percent. To add VAT, the calculator multiplies the net price by the rate as a decimal and adds the result. To take it out, it works backward: it divides the gross price by 1 plus the rate.

This is the part most people miss. It's tempting to take the rate straight off the gross price. At 20%, taking 20% off $300 gives $240, but the true net price is $300 ÷ 1.2 = $250. The VAT is a fraction of the net price. So as a share of the gross price it's smaller: rate ÷ (100 + rate), which is one sixth at 20%.

Worked example

A consultant quotes $250 before VAT, and the standard rate is 20%. Separately, a customer has a receipt for $300 that includes 20% VAT.

  1. VAT on the quote: $250 × 20% = $50.00.
  2. Gross price: $250 + $50 = $300.00.
  3. From the receipt: $300 ÷ 1.2 = $250.00 net, so the VAT is $300 − $250 = $50.00.
  4. Check with the shortcut: $300 × 20 ÷ 120 = $50.00, which is 16.6667% of the gross price.

Result: The gross price is $300.00, of which $50.00 is VAT.

Understanding the result

Take a business registered for VAT. The VAT on a sale is output tax, which it owes to the tax authority. The VAT on a purchase is input tax, which it can usually claim back. The net price is the figure that matters for margin and profit.

For a shopper, the gross price is what you pay. The VAT amount is the part of it that goes to the government.

Assumptions and limitations

  • A single rate applies to the whole amount.
  • The rate you enter is the correct rate for the item. The calculator doesn't look up rates by country or product.
  • Results are shown to the cent, without rounding line by line.
  • Invoices with items at different rates (standard, reduced, zero) need a separate calculation for each rate.
  • It doesn't cover rules that vary by country. Those include registration thresholds, exemptions, reverse-charge rules (where the buyer pays the VAT instead of the seller) and special schemes.
  • This is arithmetic, not tax advice. Check with the tax authority where you trade for the rules that apply to you.

Frequently asked questions

Is VAT the same as sales tax?

Both are taxes on spending, charged as a percentage of the price. The math of adding or removing them is the same. The difference is how they're collected. Sales tax is charged only on the final sale to the shopper. VAT is charged at each step, and businesses claim back the tax on what they buy. Prices are also usually shown with VAT included, but without sales tax.

Why is 20% VAT only one sixth of the price I paid?

Because the 20% is charged on the net price, not on the total. A $250 net price plus $50 VAT is $300, and $50 is one sixth of $300. In general, the VAT share of a gross price is rate ÷ (100 + rate).

What is the difference between VAT and GST?

They're the same kind of tax under different names. Countries such as Australia, Canada, India, New Zealand and Singapore call it GST. Most of Europe calls it VAT. The rate and the rules differ by country, but the price math is identical.

How do I remove VAT from a price?

Divide the gross price by 1 plus the rate as a decimal. At 15%, $115 ÷ 1.15 = $100 net, and the VAT was $15. Subtracting 15% of $115 would give $97.75, which is wrong.

How this calculator is checked

Method: Percentage of the net price for adding VAT; division by (1 + rate) to extract it; the rate ÷ (100 + rate) identity for the share of gross. The calculation is covered by automated tests with known reference values and edge cases. Last updated 2026-10-18. Found a problem? Tell us.

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