How to Calculate VAT (With a Free VAT Calculator)

VAT trips up many small businesses. Whether you need to add VAT to a net price or work out the VAT inside a gross price, the maths is simple once you know the formula — and our free VAT Calculator does it instantly.

> Try it now: Use the free [VAT Calculator](/vat-calculator) — no signup, no watermark.

Key things to know

To add VAT: multiply the net amount by (1 + rate). At 20%, £100 × 1.20 = £120.

To remove VAT: divide the gross amount by (1 + rate). £120 ÷ 1.20 = £100 net, £20 VAT.

Always show the VAT amount separately on the invoice.

Use the rate that applies in your country or to the specific goods.

Keep records of VAT charged and paid for your returns.

Do it automatically in Quotation Expert

The free tool is great for one-offs. If you do this regularly, Quotation Expert keeps your customers, products, and history in one place and generates documents in seconds. [Create a free account](/sign-up) or explore [all features](/features).