VAT calculator
Add VAT to a price, or take VAT off a price that already includes it. Choose the standard 20% rate, the reduced 5% rate, zero rate or your own rate, and see the net, VAT and gross amounts to the penny.
Updates as you type. Runs in your browser. Nothing you enter is stored or sent.
- Net (before VAT)
- VAT
- Gross (including VAT)
How this calculator works
VAT is charged as a percentage of the net price, the price before VAT. The gross price is the net price plus the VAT.
Adding VAT: VAT = net × rate. Gross = net + VAT. At 20%, that's net × 1.2.
Removing VAT: net = gross ÷ (1 + rate). VAT = gross − net. At 20%, that's gross ÷ 1.2, and at 5% it's gross ÷ 1.05.
A common mistake when removing VAT is to take 20% off the gross price. That takes off too much, because the VAT was worked out on the smaller net figure. At 20%, the VAT inside a VAT-inclusive price is one sixth of it (20 ÷ 120), not one fifth. For example, £120 including VAT is £100 net plus £20 VAT, while 20% of £120 would be £24.
How pence are rounded
The calculator works in whole pence so the three figures always add up exactly. When adding VAT, it rounds the VAT to the nearest penny (half a penny rounds up) and adds it to the net price. When removing VAT, it rounds the net price to the nearest penny and the VAT is whatever is left, so net + VAT always equals the gross price you entered. HMRC lets businesses round VAT to the nearest penny on each line or on the invoice total, so your own invoice may differ by a penny when it has many lines.
VAT tips for small businesses
- Know the registration threshold. You must register for VAT if your taxable turnover over the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone. You can register voluntarily below that. Once registered, you can ask to cancel if turnover falls below £88,000. Figures checked on GOV.UK in October 2026; check there for the current figures.
- Look at the Flat Rate Scheme. If your VAT taxable turnover is £150,000 or less (excluding VAT), you may be able to use the VAT Flat Rate Scheme. You still charge customers the normal VAT, but pay HMRC a fixed percentage of your VAT-inclusive turnover, set by your type of business. It can mean simpler records, but you generally can't reclaim VAT on purchases, so check whether it suits you.
- Quote prices clearly. Say whether a price is "plus VAT" or "including VAT". Prices shown to consumers generally have to include VAT.
- Check the rate for what you sell. Most goods and services are 20%, but some, like home energy and children's car seats, are 5%, and others, like most food and children's clothes, are 0%. Zero-rated is not the same as exempt. GOV.UK has a full list of VAT rates.
- Keep your VAT money separate. Moving the VAT part of each payment you receive into a separate account makes your VAT bill easier to pay.
Frequently asked questions
How do I work out 20% VAT?
Multiply the net price by 0.2 to get the VAT, or by 1.2 to get the price including VAT. For example, £250 net has £50 VAT, making £300 gross.
How do I take VAT off a price?
Divide the price including VAT by 1.2 (for 20% VAT) to get the net price, then subtract that from the original price to get the VAT. For example, £300 ÷ 1.2 = £250 net, so the VAT is £50.
Why isn't removing VAT the same as taking 20% off?
VAT is 20% of the net price, not of the gross price. Taking 20% off the gross price removes too much. The VAT part of a price at 20% is one sixth of the gross price.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. The reduced rate of 5% applies to things like home energy, and the zero rate of 0% applies to things like most food, books and children's clothes. Some things, like insurance and most education, are exempt from VAT altogether. Use the custom rate for any other percentage.
Why might my invoice be a penny different?
Rounding. This calculator rounds to the nearest penny once. If an invoice works out VAT line by line and then adds the lines up, the total can differ by a penny or so. Both ways are allowed, as long as a business is consistent.
Does it save my numbers?
No. Everything is calculated in your browser and nothing is stored or sent anywhere.
Is this tax advice?
No. It's a simple arithmetic tool. For which VAT rate applies to what you sell, or whether you need to register, check GOV.UK or ask an accountant.
Estimates for illustration only and not financial or tax advice.