VAT / Tax Calculator
Add VAT to a price, or work backward from a VAT-inclusive price to find the tax amount and pre-tax value, at any rate.
Inclusive → Exclusive: Price / (1 + VAT%)
VAT Amount = Inclusive − Exclusive
Disclaimer. This tool performs a straightforward VAT calculation at the rate you specify, for estimation purposes only — always confirm the correct VAT/tax rate and any exemptions that apply in your jurisdiction before finalising invoices or pricing. Read full disclaimer →
How VAT Is Calculated
This calculator works in two directions. Adding VAT to an exclusive (pre-tax) price: Price Including VAT = Price × (1 + VAT%). Removing VAT from an inclusive (tax-already-added) price works in reverse: Price Excluding VAT = Price ÷ (1 + VAT%). In both directions, the VAT amount itself is simply Inclusive Price − Exclusive Price.
Getting the direction right matters: dividing an inclusive price by (1 + VAT%) is not the same as multiplying it by the VAT rate directly — that common mistake overstates the tax amount, since the VAT rate applies to the exclusive price, not the inclusive one.
Worked Example
Adding VAT: a ₹1,000 exclusive price at 20% VAT becomes ₹1,000 × 1.20 = ₹1,200 inclusive (₹200 VAT). Removing VAT: a ₹1,200 inclusive price at 20% VAT works back to ₹1,200 ÷ 1.20 = ₹1,000 exclusive (the same ₹200 VAT amount) — confirming both directions are mathematically consistent.