VAT Calculator

Calculate VAT (Value Added Tax) either way: add it to a net price to get what the customer pays, or work backward from a VAT-inclusive price to find the underlying net amount and the tax itself.

₹100
₹
20%
%

20% is the UK/most-EU standard rate - check your country's rate if different.

Gross (incl. VAT)
₹120
Net (excl. VAT)
₹100
VAT amount
₹20

How to calculate VAT

Adding VAT multiplies the net price by the rate and adds it on. Removing VAT divides the gross price by (1 + rate) to recover the net amount, since the gross price already has VAT baked in - you can't just subtract the rate from the gross figure directly.

Formula
Add: Gross = Net x (1 + rate) | Remove: Net = Gross / (1 + rate)

Example. Adding 20% VAT to a 100 net price gives a 120 gross price (20 VAT). Removing 20% VAT from a 120 gross price gives a 100 net price - not 96, which is the common mistake of simply subtracting the percentage.

Frequently asked questions

Why can't I just subtract the VAT rate from the gross price?

Because the rate applies to the NET price, not the gross one. Subtracting 20% directly from a 120 gross price gives 96, but the correct net price is 100 - you have to divide by (1 + rate), not multiply the gross by (1 - rate).

What VAT rate should I use?

VAT/GST rates vary by country and sometimes by product category (standard, reduced, zero-rated). 20% is a common standard EU/UK rate, but check your local tax rules for the exact figure that applies to you.

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