VAT / Sales Tax Calculator
Value Added Tax (VAT) and sales tax are consumption taxes applied as a percentage of a product or service's price. This calculator lets you work in either direction: add a tax rate to a net (pre-tax) price to find the gross amount you will pay, or strip the tax out of a gross (tax-inclusive) price to reveal the underlying net cost.
Understanding the difference between adding and removing tax is essential for businesses issuing invoices, consumers comparing prices, and accountants reconciling accounts. The calculations use standard inclusive and exclusive tax formulas, ensuring precision for any tax rate — from the UK's 20% VAT to the US's varied state sales tax rates.
How it works
Add tax: gross = net × (1 + rate/100); tax = gross − net. Remove tax: net = gross ÷ (1 + rate/100); tax = gross − net.
Use cases
- Calculating the final price of goods or services including VAT
- Extracting the pre-tax net price from a VAT-inclusive receipt
- Preparing invoices that must show net, tax, and gross separately
- Comparing prices across countries with different VAT or sales tax rates
- Verifying tax amounts on supplier invoices for bookkeeping and auditing