UK VAT Calculator
Add VAT to a price, or take it out of a total that already includes it. Net, VAT and gross, to the penny.
You have a price without VAT and want the price with VAT.
Most things are 20%. Some, like home energy, are 5%, and some, like most food, are 0%. Check which applies to what you sell on GOV.UK.
total including 20% VAT
£100.00 × 20% = £20.00 VAT, so the total is £120.00.
Ok, I'm pricing a job at £100 before VAT, and the VAT rate is 20%.
20% of £100 is £20, so I'll charge £120.
Hmm, what if I'd quoted £100 and forgotten to add the VAT? As a VAT-registered business I'd still owe £16.67 of it as VAT, so I'd only keep £83.33.
I'd rather get that right before I send the invoice.
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This calculator adds VAT to a price, or takes VAT out of a price that already includes it, using the UK rates of 20%, 5% and 0%. It shows the net price, the VAT and the gross price to the penny.
How we work it out
To add VAT, we multiply the price by the rate and add it on: £100 at 20% is £20 of VAT, so £120 in total. To remove VAT, we divide the total by one plus the rate (1.2 for 20%) to get the price before VAT, and the VAT is what is left. Everything is worked in whole pence, and the VAT is rounded to the nearest penny, with half a penny rounding up. If your accounting software rounds each invoice line separately, a total can differ by a penny.
UK VAT rates
GOV.UK lists three rates: a standard rate of 20% for most goods and services, a reduced rate of 5% for some things such as home energy, and a zero rate of 0% for others such as most food and children’s clothing. The standard rate has been 20% since 4 January 2011. Which rate applies depends on what you sell, so check the VAT rates page on GOV.UK. Rates checked October 2026.
Important
This is a calculator, not tax advice. It does the arithmetic on the amount and rate you enter and does not decide which rate applies or whether you should be charging VAT. For anything that matters, check GOV.UK or ask an accountant. Need a proper invoice with VAT on it? Try the UK Invoice Maker.
Adding 20% VAT at a glance
| Price before VAT | VAT at 20% | Price with VAT |
|---|---|---|
| £10.00 | £2.00 | £12.00 |
| £25.00 | £5.00 | £30.00 |
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £250.00 | £50.00 | £300.00 |
| £500.00 | £100.00 | £600.00 |
| £1,000.00 | £200.00 | £1,200.00 |
To take 20% VAT out of a price that already includes it, divide by 1.2.
Common mistakes
- Taking 20% off a total to remove VAT. To take 20% VAT out of a total, divide by 1.2.
- Charging VAT when you are not VAT-registered.
- Using the wrong rate. Not everything is charged at 20%.
- Mixing prices with and without VAT on the same invoice.
Questions
How do I add VAT to a price?
Multiply the price by 1.2 for the standard 20% rate. For £50 that is £60, of which £10 is VAT. For the 5% rate, multiply by 1.05.
How do I take VAT out of a total?
Divide by 1.2 for the standard rate. £60 divided by 1.2 is £50, so £10 of the total is VAT. Taking 20% off £60 gives £48, which is wrong, because the VAT was 20% of the smaller price, not of the total.
What are the current UK VAT rates?
GOV.UK lists a standard rate of 20%, a reduced rate of 5% and a zero rate of 0%. The standard rate covers most goods and services. Which rate applies depends on what you sell, so check the GOV.UK VAT rates page.
Is zero-rated the same as VAT exempt?
No. Zero-rated sales are still VAT sales, charged at 0%. Exempt sales are outside VAT altogether. The difference matters for VAT-registered businesses, so check GOV.UK or ask an accountant if you are unsure which applies to you.
Why is my total a penny different from my accounting software?
Rounding. This calculator rounds the VAT on the whole amount to the nearest penny. Software that rounds each invoice line, or that rounds in a different way, can end up a penny apart on a total.
Do I need to charge VAT?
Only if your business is VAT registered, and registration depends on your taxable turnover and your situation. This calculator does not decide that. Check the current rules on GOV.UK or ask an accountant.
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