VAT Calculator
Adjust the inputs below. Results update as you type.
How it works
Price with VAT = net × (1 + rate). Net from gross = gross / (1 + rate). VAT amount = gross − net. UK standard VAT: 20%. EU rates: 17–27%. Reduced rates apply to food, books, children's clothing in many countries. VAT-registered businesses collect VAT from customers and remit to the government, minus input VAT paid on purchases (the 'VAT chain'). US uses sales tax instead of VAT.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
VAT (value-added tax) adds to the net price: gross = net × (1 + VAT rate). To remove VAT from a gross price, divide: net = gross ÷ (1 + VAT rate).
Worked example
At a 20% VAT rate, a £100 net price becomes £120 gross. Working backward, a £120 gross price ÷ 1.20 returns the £100 net price, with £20 of VAT.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
How do I remove VAT from a price?+
Divide the VAT-inclusive price by 1 plus the rate. For 20% VAT, divide by 1.2 to find the price before tax.
Is VAT the same as sales tax?+
Both are consumption taxes, but VAT is collected in stages along the supply chain, while US sales tax is charged once at the final sale.
Do VAT rates vary?+
Yes. Countries set their own standard rate and often have reduced or zero rates for essentials like food, books, or children's goods.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.