DollarWise

Free VAT Calculator

October 12, 2026 · 3 min read · By the DollarWise team

How it works

Choose whether you are adding VAT to a net price or removing it from a VAT-inclusive total, enter the amount and the rate — or tap a country preset — and this calculator shows the net, the VAT amount, and the gross, all to the cent.

VAT Calculator

Add VAT to a net price, or split any gross total into net plus VAT — instantly.

100% Free Forever No Sign-up No Credit Card Private — files never leave your browser Unlimited Use

1 Amount & direction

2 VAT rate

Presets are standard rates — reduced rates apply to some goods and services.

3 See the breakdown

🧾 Your VAT breakdown

🎉 Free forever. No sign-up. No credit card. No limits.

This tool runs entirely in your browser — split as many invoices as you like, as often as you like.

How the math works

Adding VAT: VAT amount = net × rate ÷ 100, and gross = net + VAT. Removing VAT from a gross figure is the step people most often get wrong: because VAT was charged on the net price, you recover it with division, not subtraction — net = gross ÷ (1 + rate ÷ 100), and the VAT is the difference. At the UK’s 20% rate, the VAT inside a $120 gross price is $20 — not the $24 you would get by taking 20% of $120.

Everyday uses

  • Freelance invoices: quote a client a net fee and show the VAT line correctly, or split a lump-sum payment into net and VAT for your return.
  • Online selling: work out how much of a VAT-inclusive marketplace price is actually yours after the tax portion comes out.
  • Business purchases: find the net cost of equipment bought at a gross price when you can reclaim the VAT.
  • Cross-border work: apply the right standard rate for clients in the UK, the EU, the UAE, Pakistan, or India with one tap.

Frequently asked questions

Q: Why is removing VAT not just subtracting the percentage? A: Because the percentage was applied to the smaller net figure. Taking 20% off a gross price overstates the VAT and understates your net. Dividing by 1.20 (at a 20% rate) reverses the original calculation exactly.

Q: What is the difference between VAT and sales tax? A: Sales tax (US-style) is charged once, to the final customer. VAT is charged at every stage of production and supply, with each business reclaiming the VAT it paid — so the math for a single price looks the same, but who reports and reclaims it differs.

Q: Are these the current standard rates? A: The presets reflect the widely used standard rates for each country (UK 20%, Germany 19%, France 20%, UAE 5%, Pakistan 18%, India GST 18%). Reduced rates exist for essentials like food, books, and energy in many countries — type your exact rate into the rate box whenever a reduced rate applies.