How to use the sales tax & vat calculator
- Choose whether your price already includes tax.
- Enter the amount and the tax rate.
- Read the total, the tax amount, and the price before tax.
Removing tax: the common mistake
To take 20% VAT out of a price of 120, you can’t just subtract 20% of 120 (which gives 96). The 120 already is 120% of the net price, so you divide: 120 ÷ 1.20 = 100. The tax was 20, not 24.
Formulas
- Add tax
total = price × (1 + rate ÷ 100)- Remove tax
net = total ÷ (1 + rate ÷ 100)
Examples
Tax $9.90 · total $129.90
Net £100.00 · VAT £20.00