Percentages & Everyday Math
VAT / Sales Tax Calculator
Add or remove VAT and sales tax from any price.
Result
Enter your numbers and press Calculate to see the result.
Calculating…
How VAT and sales tax math works
Both VAT and sales tax are a percentage added on top of a net price. The calculator works in two directions: add tax to a net amount to get the gross price, or remove tax from a gross amount to recover the pre-tax price — a common need for invoices and expense reports.
Formulas
Gross = net × (1 + rate ÷ 100)
Net = gross ÷ (1 + rate ÷ 100)
Tax amount = gross − net
Worked examples
- Add 20% VAT to $100 — 100 × 1.20 = $120 gross; the tax is $20.
- Remove 20% VAT from $120 — 120 ÷ 1.20 = $100 net. Subtracting 20% of 120 would give $96, which is wrong — the tax was charged on the net, not the gross.
- Add 8.875% sales tax to $50 — 50 × 1.08875 = $54.44.
VAT vs. sales tax
Both add a percentage to a price, but they are collected differently. Sales tax (common in the US) is added once, at the final sale to the consumer, and shown on top of the shelf price. VAT (used across the EU, UK, and much of the world) is charged at every stage of production, with businesses reclaiming what they paid, and is usually already included in the displayed price. The arithmetic in this calculator is the same for either — what differs is whether the rate is added at checkout or baked into the ticket price.
Tax-inclusive vs. tax-exclusive prices
This is where the "remove tax" direction matters. If a receipt shows a gross, tax-inclusive total and you need the net
figure for an expense claim, divide by 1 + rate — do not subtract the rate from the gross, which
overstates the tax. For example, stripping 20% VAT from £120 gives £100 net and £20 tax, not £96.
The quantity field multiplies the amount first, which is handy for line items. For discounts combined with tax, see the discount calculator.
VAT / Sales Tax Calculator — frequently asked questions
How do I add VAT to a price?
Multiply the net price by (1 + rate ÷ 100). At a 20% rate, a net price of $100 becomes 100 × 1.20 = $120 gross, of which $20 is tax.
How do I remove VAT from a gross price?
Divide the gross price by (1 + rate ÷ 100) — do not subtract the percentage. A $120 gross price at 20% VAT is 120 ÷ 1.20 = $100 net. Subtracting 20% would wrongly give $96.
What is the difference between net and gross?
The net amount is the price before tax; the gross amount is the price after tax is added. The difference between them is the tax amount itself.
Does this work for US sales tax as well as VAT?
Yes. Mathematically VAT and sales tax are applied the same way — a percentage added on top of the net price — so you can enter any rate, from a state sales tax to a European VAT rate.