VAT calculator

Add VAT to a net figure, or pull it out of a gross one. The formula and each step are shown below the result, so you can check the answer rather than take it on trust.

The formula

adding: gross = net × (1 + rate). Extracting: net = gross ÷ (1 + rate). Decide first whether the number already contains VAT. If it does, divide; if it does not, multiply.

What people get wrong

Extracting VAT is not the same as subtracting the rate. Taking 20% off £120 gives £96; the correct net is £100. That single mistake is the most common error on a VAT return.

What this assumes

VAT rates are set per country and change. State the rate you mean rather than relying on a default.

Questions

Why do you show the formula?

Because a number with no working is something you have to trust rather than something you can check. Showing the formula and the steps also answers the question sitting next to the calculation — people search for how to calculate a thing at least as often as they search for a tool that does it.

How do you handle rounding?

Money is rounded to two decimals on output, and schedules keep their running balances consistent so the final payment is trued up and the balance lands exactly on zero. Rounding is done deliberately at the end rather than accumulating quietly through the middle.

Are the tax and finance calculators up to date?

They compute correctly from the rate you give them. They do not know your jurisdiction, and any calculator whose answer depends on a rate or a filing rule says so on its own page. A calculator that silently assumes one country’s rate is wrong for everyone else and looks identical either way.