VAT / Sales Tax Calculator
Add or remove VAT (sales tax) from a price.
System verdict
RESULTGross (incl. tax): 120
Adding tax multiplies by the rate; removing it divides — you cannot just subtract the same percentage you would add, which is a common mistake.
Diagnostic telemetry
- Gross (incl. tax)
- 120
- Tax
- 20
What this cannot tell you
- Pure arithmetic on the values you enter.
How this calculation works
Adding tax multiplies the net amount by the rate; removing it divides the gross by one-plus-the-rate. The two are not symmetric, which is the mistake this avoids.
What the results mean
- Add vs remove
- To add 20% you multiply by 1.2; to remove it you divide by 1.2 — not subtract 20%, which would be wrong.
Frequently asked questions
Why can’t I just subtract 20% to remove VAT?
Because the 20% was added to the net, not the gross. Removing it means finding the number that becomes the gross when increased by 20% — you divide by 1.2. Subtracting 20% of the gross takes off too much.