VAT Calculator
This free UK VAT calculator adds or removes VAT at 20%, 5%, 0% or any rate. Type an amount to see the price before VAT, the VAT and the total.
Rates checked on 26 September 2026. Source: GOV.UK pages on VAT rates and registering for VAT.
How to calculate VAT
VAT (Value Added Tax) is a tax added to most goods and services in the UK. The standard rate is 20%. The price before VAT is the net price, and the price with VAT is the gross price. To add 20% VAT, multiply the net price by 1.2. To remove it, divide the gross price by 1.2. To find just the VAT inside a price that includes 20% VAT, divide that price by 6.
UK VAT rates
- Standard rate: 20% (most goods and services)
- Reduced rate: 5% (for example home energy and children's car seats)
- Zero rate: 0% (for example most food, children's clothes and books)
How to add VAT
Multiply the net price by 1.2 to add VAT at 20%. For any other rate, the VAT is the net price times the rate divided by 100. Add that to the net price.
- Net price: £100
- VAT at 20%: £100 × 0.2 = £20
- Gross price: £100 + £20 = £120
How to remove VAT
Divide the gross price by 1.2 to get the net price at 20%. At 5%, divide by 1.05.
- Gross price: £120
- Net price: £120 ÷ 1.2 = £100
- VAT: £120 - £100 = £20
Reverse VAT: how much VAT is in a price?
Reverse VAT means finding the VAT inside a price that already includes it. HMRC calls the share of the price that is VAT the VAT fraction. It is the rate divided by (100 + the rate). At 20% that is 20 ÷ 120, which is one sixth.
- Price including 20% VAT: £90
- VAT: £90 ÷ 6 = £15
- Net price: £90 - £15 = £75
The divide-by-6 shortcut
Divide any price that includes 20% VAT by 6 to get the VAT. The shortcut only works at 20%. At 5% the VAT fraction is 5 ÷ 105, which is one twenty-first, so divide by 21 instead.
Worked examples at 5% and 0%
Home energy is charged at the reduced rate of 5%.
- Energy bill of £180 before VAT: £180 × 0.05 = £9 of VAT, so the total is £189
- Going backwards: £189 ÷ 21 = £9 of VAT, leaving £180
Most food and children's clothes are zero-rated. A child's coat priced at £35 has £0 of VAT, so the total stays £35.
How to use the VAT calculator
- Choose Add VAT or Remove VAT.
- Enter the amount.
- Pick 20%, 5% or 0%, or type your own rate.
- Read the VAT and the answer: the total when you add VAT, or the price before VAT when you remove it. Tap or click either figure to copy it.
The calculator rounds the VAT to the nearest penny and works out the other figure from it, so the net price and the VAT always add up to the gross price.
VAT registration threshold
You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or if you expect your taxable turnover in the next 30 days alone to go over £90,000. The 12 months are rolling: check at the end of every month by looking back over the previous 12 months, rather than waiting for your tax year to end. The threshold rose from £85,000 to £90,000 on 1 April 2024.
Taxable turnover is the total value of everything you sell, apart from sales that are exempt from VAT or outside the VAT system. Zero-rated sales count. You can choose to register if your turnover is below £90,000. Once registered, you can ask HMRC to cancel your registration if your taxable turnover falls below £88,000.
Frequently asked questions
How do I work out VAT backwards from a total?
At 20%, divide the total by 1.2 to get the price before VAT, or divide it by 6 to get the VAT on its own. At 5%, divide by 1.05 for the price before VAT, or by 21 for the VAT.
What is the VAT rate in the UK?
The standard rate is 20% and covers most goods and services. There is a reduced rate of 5%, for example on home energy and children's car seats, and a zero rate of 0%, for example on most food and children's clothes.
Why is the VAT not 20% of the total?
Because the total already includes the VAT. On a £120 total, 20% would be £24, but the VAT is £20, which is 20% of the £100 price before VAT. At the 20% rate the VAT is always one sixth of the total.
Is zero-rated the same as exempt from VAT?
No. Zero-rated goods, such as most food, are taxable at 0%, and their sales count towards the £90,000 registration threshold. Exempt items, such as postage stamps and financial and property transactions, have no VAT and do not count towards it.
Related guide and tools
Read the full VAT guide for more on working with VAT in a business. To price your work or bill a customer, try the Profit Margin Calculator, the Invoice Generator or the Receipt Generator, or browse all financial tools.