VAT / Sales Tax Calculator
Add or remove VAT / sales tax at any rate and see the tax amount instantly.
How to use the VAT / Sales Tax Calculator
- Enter the amount.
- Enter the VAT / sales tax rate for your country.
- Choose whether to add tax to a net price or remove it from a gross price.
- See the tax and the net / gross totals.
Add: Tax = Net × rate% · Remove: Net = Gross ÷ (1 + rate%)
About the VAT / Sales Tax Calculator
VAT, GST and sales tax are all percentage taxes applied on top of a price, and this calculator runs in both directions. In add mode it computes Tax = Net × rate and Gross = Net + Tax. In remove mode it works backwards from a tax-inclusive price: Net = Gross ÷ (1 + rate), with the tax being the difference. Either way you get the tax amount, the net figure and the gross figure together.
The reverse direction is where mistakes happen. Subtracting the rate from a gross price gives the wrong answer, because the tax was calculated on the smaller net figure rather than the total. At a 20% rate, for example, taking 20% off a gross 120 gives 96 — but the correct net is 100. Dividing by (1 + rate) is the right operation, and it is what this tool does.
You supply the rate, and that is deliberate. Rates differ by country and frequently by product category within the same country — reduced or zero rates for things like food, books, children's clothing or medicines are common — and they change over time. This calculator does not know your jurisdiction, handles one rate at a time rather than a mixed basket, and does not deal with reverse-charge, exemptions or cross-border rules. Check the rate that actually applies before you rely on the figure. See also profit margin and discount.
Frequently asked questions
Why can’t I just subtract 20% to remove 20% VAT?
Because the 20% was added to the net price, not the gross one. Subtracting 20% from a gross 120 gives 96, but the true net is 100 and the VAT is 20. To reverse it you divide the gross by 1.20. This tool does that automatically in remove mode.
What rate should I enter?
Whichever rate applies to your country and to that specific product or service. We deliberately do not assume one: rates vary by jurisdiction, many countries apply reduced or zero rates to certain categories, and rates get changed. Check an official source rather than a default.
Does this work for GST and US sales tax?
The arithmetic is identical — any percentage tax added to a price behaves the same way. What differs is the rate and the rules around it. US sales tax in particular is set at state and local level, so the rate you need depends on location.
Can I find the tax already included in a receipt total?
Yes. Choose remove mode, enter the total from the receipt and the rate that applied. It will show the net price and how much of the total was tax.
Can it handle a basket with several different rates?
No. It applies one rate to one amount. For a mixed basket, run each rate group separately and add the results together.
Guides & articles about this tool
VAT Explained: How to Add and Remove Sales Tax
To calculate VAT (Value Added Tax), you multiply the net amount by the VAT rate and add the result to the net amount. For example, adding 20% VAT to £100…