VAT Calculator
Add VAT to a price without it, or work out the price without VAT from a price that includes it.
Price with VAT
Enter a price and a VAT rate to see your result.
How VAT is calculated
Adding VAT: multiply the price without VAT by the VAT rate to get the VAT, then add it to the price. For example, at a 20% rate the VAT on €100 is €20 (€100 × 0.2), so the price with VAT is €120 (€100 + €20).
Price with VAT = price without VAT × (1 + VAT rate ÷ 100)
Removing VAT: to find the price without VAT (the net price) from a price that includes VAT, divide by 1 plus the rate. For example, at 20%: €120 ÷ (1 + 20 ÷ 100) = €120 ÷ 1.2 = €100. The VAT is €20 (€120 − €100).
Price without VAT = price with VAT ÷ (1 + VAT rate ÷ 100)
Taking 20% off a price that includes 20% VAT does not give the net price: 20% of €120 is €24, not the €20 of VAT it contains.
Why VAT matters for your margins
VAT is collected from your customers for the tax authority, so it is not revenue. If you work out margins, ROAS or order profit from prices that include VAT, every figure looks better than it is.
Use prices without VAT when you work out profit. The Breakeven ROAS and PROAS calculators remove VAT for you when you choose the rate.
Worked example
| Price without VAT | €100.00 |
|---|---|
| VAT at 20% | €20.00 |
| Price with VAT | €120.00 |
A product sells for €100 before VAT at a 20% rate. The VAT is €20 and the customer pays €120. Working back from €120 at 20% gives the same €100 and €20 of VAT.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the price by 1.2. For example, €50 × 1.2 = €60, of which €10 is VAT.
How do I remove 20% VAT from a price?
Divide the price by 1.2. For example, €60 ÷ 1.2 = €50, so the VAT was €10. Multiplying by 0.8 gives the wrong answer (€48), because the VAT is 20% of the net price, not of the price including VAT.
What are the standard VAT rates?
It depends on the country, and many countries also have reduced rates for some goods. The standard rate is 20% in the UK, 23% in Ireland, 19% in Germany and 21% in the Netherlands and Spain. Check the rate for each product with your tax authority or accountant.
Should I include VAT when I work out my margins?
No. VAT belongs to the tax authority, so work out margins, ROAS and profit from prices without VAT. You can usually reclaim the VAT on your business costs, so leave it out of costs too.
Is sales tax the same as VAT?
Both are taxes on sales, but US sales tax is usually added at checkout and shown separately, while VAT in the UK and EU is usually included in the price shown to consumers. The maths for adding or removing a rate is the same.
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