# VAT Calculator

> Free UK VAT calculator. Enter an amount to add VAT or remove VAT at 20%, 5% or any other rate, and see the net, VAT and gross figures instantly.

Type in an amount and see it with VAT added and with VAT taken off, at the standard 20% rate, the reduced 5% rate or any rate you choose.

Use the calculator: https://www.taxoptimiser.co.uk/calculators/vat

Example: £100 plus VAT at 20% is £120.00. £100 including VAT at 20% is £83.33 net and £16.67 VAT.

## How to add VAT

To add VAT to a net (VAT-exclusive) price, multiply it by 1 plus the VAT rate. At the standard rate of 20% that means multiplying by 1.2, so £100 plus VAT is £120. At the reduced rate of 5%, multiply by 1.05.

## How to remove VAT

To take VAT off a gross (VAT-inclusive) price, divide it by 1 plus the VAT rate. At 20% that means dividing by 1.2, so £120 including VAT is £100 before VAT. Taking 20% off the gross price gives the wrong answer: 20% of £120 is £24, not the £20 of VAT it contains.

## The VAT fraction

A shortcut for the VAT inside a gross price is the VAT fraction. At 20% the VAT is one sixth of the gross amount; at 5% it is one twenty-first.

## Flat Rate Scheme

Small businesses can pay HMRC a fixed percentage of their turnover instead. Use the VAT Flat Rate Scheme calculator to compare it with standard VAT accounting for your type of business.

## UK VAT rates

| Rate | Percentage | Applies to |
| --- | --- | --- |
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | For example domestic gas and electricity and children's car seats |
| Zero rate | 0% | For example most food, books and children's clothes |

## Frequently asked questions

### How do I add 20% VAT to a price?

Multiply the net price by 1.2. For example, £100 plus VAT at 20% is £120.

### How do I work out the VAT in a VAT-inclusive price?

At 20%, divide the gross price by 6 to get the VAT, or by 1.2 to get the net price. £120 including VAT is £100 net and £20 VAT.

### Why can't I just take 20% off the gross price?

Because VAT is 20% of the net price, not of the gross. 20% of £120 is £24, but the VAT inside £120 is only £20.

### What are the UK VAT rates?

The standard rate is 20%, the reduced rate is 5% and the zero rate is 0%. Some supplies are exempt or outside the scope of VAT altogether.

## Related calculators

- [VAT Flat Rate Scheme Calculator](https://www.taxoptimiser.co.uk/calculators/vat-flat-rate-scheme.md): Compare the Flat Rate Scheme with standard VAT, with the limited cost trader test.
- [MTD for Income Tax Checker](https://www.taxoptimiser.co.uk/calculators/mtd-income-tax-checker.md): Check when Making Tax Digital for Income Tax applies to you, and your deadlines.
- [Corporation Tax Calculator](https://www.taxoptimiser.co.uk/calculators/corporation-tax.md): Estimate Corporation Tax for a UK limited company with marginal relief.

## Sources

- [VAT rates](https://www.gov.uk/vat-rates) (GOV.UK)

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Last updated 11 October 2026. Guidance only: a general estimate, not tax advice. Published by Tax Optimiser, UK tax filing software (https://www.taxoptimiser.co.uk).