How to calculate vat
Gross = Net × (1 + rate) · Net = Gross ÷ (1 + rate)
Worked example. Price including VAT: $120.
Example inputs — Amount: $100; VAT rate: 20 %; I want to: Add VAT to a net price. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
To add VAT, multiply the net price by (1 + rate). To remove VAT from a gross price, divide by (1 + rate) — you can't just subtract the percentage.
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
Why can't I just subtract 20% to remove VAT?
Because VAT is calculated on the net price, not the gross. 20% of the gross is more than the tax that was added.