UK VAT Calculator
Add or remove VAT from any amount with our free UK VAT calculator. Calculate the net amount, VAT amount and gross total instantly using 20%, 5%, 0% or a custom VAT rate.
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How to calculate VAT in the UK
See the formulas for adding and removing VAT, with clear 20% and 5% examples.
How to add or remove VAT
Adding 20% VAT: multiply the net amount by 1.20. For example, £100 × 1.20 = £120. The VAT amount is £20.
Removing 20% VAT: divide the VAT-inclusive (gross) amount by 1.20. For example, £120 ÷ 1.20 = £100 net. The VAT amount is £20.
To find only the VAT inside a 20% gross price: divide the gross price by 6. For example, £120 ÷ 6 = £20 VAT.
Removing VAT is not the same as subtracting 20% from the gross price. Subtracting 20% from £120 gives £96, but the correct net price is £100 because the original VAT was 20% of the £100 net amount.
How to use the UK VAT Calculator
Enter an amount, choose whether you are adding VAT to a net price or removing VAT from a VAT-inclusive price, then enter the VAT rate. UsefulFox calculates the net amount, VAT amount and gross total for you. The calculator supports the common UK rates of 20%, 5% and 0%, as well as a custom rate.
UK VAT calculation examples
What is £60 plus 20% VAT? £60 × 1.20 = £72, made up of £60 net and £12 VAT. What is £120 including 20% VAT before VAT? £120 ÷ 1.20 = £100 net, with £20 VAT. What is £12,000 plus 20% VAT? £12,000 × 1.20 = £14,400, including £2,400 VAT.
For 5% VAT, multiply a net amount by 1.05 to add VAT or divide a VAT-inclusive amount by 1.05 to remove it. For example, £100 plus 5% VAT is £105; £105 including 5% VAT is £100 net.
Net, VAT and gross: what do they mean?
Net is the price before VAT. VAT is the tax amount added where applicable. Gross is the VAT-inclusive total. When the standard rate is 20%, a £50 net price becomes £60 gross: £50 net + £10 VAT = £60 gross.
Reverse VAT formula
To remove VAT from a gross amount, divide by 1 + VAT rate as a decimal. At 20%, divide by 1.20. At 5%, divide by 1.05. The VAT amount is the gross total minus the calculated net amount. This is why taking 20% directly off a VAT-inclusive price gives the wrong answer.
What can a VAT calculator be used for?
Use it to check invoices and quotations, compare net and gross prices, estimate business costs, check receipts or work backwards from a VAT-inclusive total. The applicable VAT rate depends on the goods, services and circumstances, so use the rate that applies to your transaction.
Understand the VAT calculation
Read our UK VAT calculation guide for formulas, 20% and 5% examples, rate checks and the difference between zero-rated and exempt supplies.
Frequently asked questions
1How do I add 20% VAT?
Multiply the net price by 1.20. For example, £100 × 1.20 = £120. The VAT element is £20.
2How do I remove 20% VAT?
Divide the VAT-inclusive amount by 1.20. For example, £120 ÷ 1.20 = £100 net, leaving £20 VAT.
3What are the main UK VAT rates?
The standard rate is 20%, the reduced rate is 5%, and some supplies are zero-rated at 0%. Some goods and services are exempt rather than zero-rated, which is a different VAT treatment.
4Why can’t I remove VAT by subtracting 20%?
Because the 20% VAT was calculated from the original net price. To reverse a 20% VAT-inclusive total correctly, divide the gross amount by 1.20.
5Can I calculate 5% VAT or use another rate?
Yes. Enter 5 for the UK reduced rate or type a custom percentage where appropriate.
6What is £60 plus VAT at 20%?
£60 plus 20% VAT is £72. The VAT is £12, so £60 net + £12 VAT = £72 gross.
7How do I calculate the VAT amount from a gross price?
At 20%, divide the gross price by 6 to find the VAT element. Alternatively, divide the gross amount by 1.20 to find the net price, then subtract the net price from the gross total.
UsefulFox provides calculation tools for general information. Check current HMRC guidance or professional advice where tax treatment matters.