VAT Calculator: Value-Added Tax and Gross Price
Work out the value-added tax on a net price and the gross total, using the standard VAT rate that applies to the sale.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | VAT | Total |
|---|---|---|
| $500 net · 20% | $100.00 | $600.00 |
| $1,000 net · 19% | $190.00 | $1,190.00 |
| $250 net · 7% | $17.50 | $267.50 |
| $4,000 net · 21% | $840.00 | $4,840.00 |
How This Calculator Works
Enter the net amount — the price before tax — and the VAT rate. The calculator multiplies the net amount by the rate to find the VAT, then adds it to give the gross price. VAT is a consumption tax used across the UK, the EU, and many other countries, collected at each stage of the supply chain.
The Formula
Percentage Add-On
Rate is the tax or tip percentage applied to the amount
Worked Example
On a net amount of $500 at a 20% VAT rate, the VAT is $100 and the gross price is $600. Unlike US sales tax, displayed consumer prices in VAT countries usually already include the tax, so the gross figure is what shoppers see.
Key Insight
VAT is charged on the value added at every stage of production, with businesses reclaiming the VAT they pay on inputs. The shopper ultimately bears the whole amount, which is why the consumer price is quoted gross.
Frequently Asked Questions
What is VAT?
Value-added tax is a consumption tax applied at each stage of the supply chain. Each business charges VAT on its sales and reclaims the VAT on its purchases, so the final consumer bears the full amount.
What is the difference between net and gross?
The net amount is the price before VAT; the gross amount is the price including VAT. This calculator adds VAT to a net amount to produce the gross figure.
What VAT rate should I use?
Use the standard rate for the country of sale, or a reduced rate where one applies to the goods. The default reflects the cited average standard rate across OECD countries.
Are consumer prices shown with VAT included?
In most VAT countries, prices displayed to consumers already include VAT. Business-to-business prices are often quoted net, with VAT shown separately on the invoice.
Can businesses reclaim VAT?
VAT-registered businesses generally reclaim the VAT they pay on purchases, so for them VAT is not a final cost. The tax ultimately falls on the end consumer.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources. The starting values for vat rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
VAT is the net amount multiplied by the rate; the gross total adds the VAT to the net amount. The calculator adds VAT to a net figure and does not extract VAT from a gross-inclusive price.
Written by Ugo Candido · Last updated May 17, 2026.