VAT calculator — net and gross
Convert a net amount to gross or a gross amount to net at any VAT rate. The calculator shows both amounts and the tax on its own.
A net amount of 1000.00 at 23% gives 1230.00 gross, of which 230.00 is tax.
Formula
N is the net amount and s the VAT rate as a decimal. The gross amount is the net amount plus the tax.
How we got there
Careful: to get from gross back to net you divide by 1.20, you do not subtract 20%. Subtracting 20% from the gross gives too low a figure.
How to work out VAT by hand
- Work out the tax on its own
Multiply the net amount by the rate: 1000 × 0.20 = £200.
- Add the tax to the net amount
1000 + 200 = £1200. That is the gross amount the customer pays.
- Going the other way, divide rather than subtract
Gross to net: 1200 ÷ 1.20 = £1000. Subtracting 20% from 1200 would give £960, which is wrong.
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Frequently asked questions
Multiply the net amount by 1 plus the rate. At 20%: 1000 × 1.20 = £1200.
Divide the gross amount by 1 plus the rate. At 20%: 1200 ÷ 1.20 = £1000.
Because VAT is charged on the net amount, not on the gross. Subtracting 20% from 1200 gives £960, whereas the right answer is £1000.
The standard rate is 20%, with reduced rates of 5% and 0% on certain goods and services. Enter whichever rate your question uses.
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