VAT Calculator
Instant results as you type.
₹
%
VAT
₹200.00
Price before VAT₹1,000.00
Price including VAT₹1,200.00
Worth knowing20% added to the net price.
For education and planning only. Your bank or lender’s actual figures can differ — fees, rounding, day-count conventions and local rules vary. Always confirm the final numbers with your provider before deciding.
Value added tax is charged on most goods and services across more than 170 countries, at rates running from a few per cent to over a quarter of the price. This adds it to a net figure or takes it back out of a gross one. The second direction is the one worth having a tool for, because it is the one people get wrong: the VAT inside a price that already includes it is not the headline rate applied to that price.
How to use it
- Say what you have — a price before VAT, or a price that already includes it.
- Enter the amount and the rate your country charges.
- You get all three figures at once: the net price, the VAT, and the gross.
Examples
- 1,000 plus 20% VAT is 1,200
- Taking 20% VAT out of 1,200 gives 1,000 — not 960, which is what subtracting 20% would give you
Frequently asked questions
- How do I remove VAT from a price?
- Divide by one plus the rate, rather than subtracting the rate. At 20% that means dividing the gross by 1.2, which turns 1,200 into a net of 1,000 and VAT of 200. Expressed the other way, the VAT portion of a gross price is the rate divided by one hundred plus the rate — so at 20% it is a sixth of the gross, or 16.67%, not 20%. Choose the second option in this calculator and it does that for you and shows the effective percentage, so you can see the difference rather than take it on trust.
- Why is removing VAT not just subtracting the rate?
- Because the rate is charged on the net price, not on the gross one. When VAT was added, it was 20% of the smaller number; when you work backwards, you are trying to find that smaller number, so 20% of the larger one overshoots. Subtracting 20% from a gross 1,200 gives 960, which is wrong by 40 — and the error grows with the rate. At 25% the gap is wider still. If you are reclaiming input VAT or working out a net figure for accounts, this is exactly the mistake that turns up in a reconciliation months later.
- Is VAT the same as GST?
- They work the same way — tax collected at each stage, with businesses reclaiming what they paid on inputs — but they are not interchangeable in practice. India's GST splits a single rate into central and state components, and our GST calculator shows that split because Indian invoices require it. VAT in the UK, the EU, the Gulf states or Nigeria is a single rate with no such division, so this page does not pretend otherwise. Use the GST calculator for an Indian invoice and this one for anywhere else.
- What VAT rate applies to me?
- It depends on your country and on what is being sold, and this tool cannot tell you — it applies the rate you type. Standard rates include 20% in the United Kingdom, 19% in Germany, 5% in the UAE and 7.5% in Nigeria, but nearly every country also runs reduced rates for things like food, books, children's clothing or medicine, and a zero rate for some categories. If the amount matters, take the rate from your own tax authority rather than from a general-purpose calculator, including this one.