Reverse VAT calculator
Enter a VAT-included amount to extract VAT and calculate the net amount.
Reverse VAT calculator: find the net from a gross price
This reverse VAT calculator starts from a VAT-inclusive (gross) price and works out the net price and the VAT amount it contains. Handy for invoices, receipts and bookkeeping. It all runs in your browser, with no sign-up.
How to remove VAT
You don’t subtract the percentage directly — you divide.
The tax is VAT = Gross − Net. For example, from £120 at 20%: net = 120 / 1.20 = £100, and the VAT is £20.
Why you can’t just subtract 20%
A common mistake is to take 20% off £120 (= £96). That’s wrong, because the 20% was charged on the net (£100), not on the total. That’s why you divide by 1.20 rather than multiply by 0.80.
Vocabulary
- Gross — the total shown on the receipt (VAT included).
- Net — the price before tax.
- VAT amount — the tax contained in the total.
Frequently asked questions
How do I get the net from a gross price? Divide the total by 1.20 (for 20%) or by 1.05 (for 5%).
Does it break down an invoice? Yes: it gives the net and the VAT separately from the total amount.
And to add VAT instead? Use the standard VAT calculator, which starts from the net.