VAT calculator
Add VAT to a net figure, or take VAT out of a VAT-inclusive figure, at the standard rate of twenty per cent, the reduced rate of five per cent, or a rate you set yourself.
Your details
Enter the amount, then say what it represents.
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Adding VAT, and taking it off again
To add VAT at twenty per cent, multiply the net amount by 1.2. To take VAT out of a VAT-inclusive figure, divide by 1.2. You do not take twenty per cent off, because the VAT is a fifth of the net amount but only a sixth of the gross. Taking twenty per cent off one thousand two hundred pounds gives nine hundred and sixty, which is not the net figure, and an invoice built on it will not agree with the VAT return.
| Rate | To add VAT | To take VAT out | VAT as a fraction of the gross |
|---|---|---|---|
| 20% | multiply by 1.2 | divide by 1.2 | one sixth |
| 5% | multiply by 1.05 | divide by 1.05 | one twenty-first |
| 0% | no change | no change | none |
Worked example
A joiner quotes eight hundred and fifty pounds plus VAT. The VAT is one hundred and seventy pounds, so the customer pays one thousand and twenty. Had the same job been quoted at one thousand and twenty pounds including VAT, dividing by 1.2 returns the same eight hundred and fifty.