VAT calculator

Work out VAT at the three UK rates. Put in a price, pick 20 percent, 5 percent or 0 percent, and choose whether you want to add VAT or take it off. The page shows the sum in words as well so you can do it without the calculator.

Rates read on gov.uk on 24 October 2026. Standard rate 20 percent, reduced rate 5 percent, zero rate 0 percent.

How to work it out

To add VAT, multiply the net price by 1 plus the rate.

• At 20 percent, multiply by 1.20. A net price of £100 becomes £120. The VAT is £20.
• At 5 percent, multiply by 1.05. A net price of £100 becomes £105. The VAT is £5.
• At 0 percent, the price does not change.

To remove VAT, divide the VAT inclusive price by 1 plus the rate, then subtract to find the VAT.

• At 20 percent, divide by 1.20. A VAT inclusive price of £120 holds £20 of VAT and £100 net. The VAT is not £24, and the net is not £96.
• At 5 percent, divide by 1.05. A VAT inclusive price of £105 holds £5 of VAT and £100 net.
• At 0 percent, the price stays as shown.

That reverse step is the one people get wrong. Taking 20 percent off a VAT inclusive price leaves you short. You must divide by 1.20.

Common amounts

The table uses the two rates that change the price. Zero rated amounts stay as typed and are not listed.

| Net | 20% VAT | VAT inclusive | 5% VAT | VAT inclusive | | --- | --- | --- | --- | --- | | £50.00 | £10.00 | £60.00 | £2.50 | £52.50 | | £100.00 | £20.00 | £120.00 | £5.00 | £105.00 | | £150.00 | £30.00 | £180.00 | £7.50 | £157.50 | | £200.00 | £40.00 | £240.00 | £10.00 | £210.00 | | £250.00 | £50.00 | £300.00 | £12.50 | £262.50 | | £500.00 | £100.00 | £600.00 | £25.00 | £525.00 | | £1,000.00 | £200.00 | £1,200.00 | £50.00 | £1,050.00 | | £2,500.00 | £500.00 | £3,000.00 | £125.00 | £2,625.00 |

VAT inclusive to net and VAT at 20 percent

| VAT inclusive | Net | VAT | | --- | --- | --- | | £60.00 | £50.00 | £10.00 | | £120.00 | £100.00 | £20.00 | | £180.00 | £150.00 | £30.00 | | £240.00 | £200.00 | £40.00 | | £600.00 | £500.00 | £100.00 | | £1,200.00 | £1,000.00 | £200.00 |

What the rates are

The standard rate is 20 percent on most goods and services. The reduced rate is 5 percent on some goods and services. For example children’s car seats and home energy are at the reduced rate. The zero rate is 0 percent on zero rated goods and services. For example most food and children’s clothes are zero rated. Some things are exempt. Postage stamps and financial transactions are examples.

All three rates above were read on gov.uk on 24 October 2026.

Questions

Is a price with VAT added the same as a VAT inclusive price divided by 1.20?

Yes, in reverse. A net price of £100 at 20 percent becomes £120. Put £120 back through the remove step, £120 divided by 1.20, and you get £100.

Why not take 20 percent off?

Because 20 percent of £120 is £24, not £20. The right VAT inside £120 is £20. That is why you divide by 1.20 and not multiply by 0.80.

Does the calculator handle 0 percent?

Yes. At 0 percent VAT is nil. The net is the figure you typed and the total is the same. The table leaves zero rated rows out because no sum is needed.

Do I need to charge VAT?

Only if you are VAT registered. Most trades register when taxable turnover goes over the threshold or when it suits the work. Check the current threshold on gov.uk.

Sources

Rates and descriptions read on gov.uk on 24 October 2026.

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