Online VAT calculator

Need to add or remove VAT from a figure, and don’t want to manually work it out? You don’t need to! We’ve created an easy online VAT calculator that does it for you.

Just input the number you need to calculate VAT on and choose either ‘Add VAT’ or ‘Remove VAT’ and the calculator will instantly add or subtract VAT. The VAT percentage is set at 20%.

What is VAT?

VAT (Value Added Tax) is a tax added to most products and services sold by VAT-registered businesses in the UK.

If the VAT taxable turnover of your business is over £85,000 you must register for VAT. You can also choose to register if your turnover is less than £85,000. The current VAT rate is 20%.

VAT-registered businesses must:

  • Include VAT in the price of all goods and services sold
  • Keep records of how much VAT they pay for things or the business
  • Account for VAT on any goods they import into the UK 
  • Report the amount of VAT they charged and the amount paid to other businesses
  • Submit VAT returns to HMRC (usually every three months?
  • Pay any VAT they owe to HMRC

Why did we create this online VAT calculator?

As a VAT-registered company, we often need to work out how much VAT to add onto an invoice, or how much VAT we owe on a payment made to us. Initially we tried to work out it manually using calculators, but this was oddly, time-consuming and left us at risk for mistakes.

Eventually we discovered online VAT calculators, which made it easier for us. But some of the calculators we found were overly complex, with more functions than we needed, and others were badly designed. Plus it was a pain constantly trying to remember which ones we liked.

So we decided to make our own free calculator that was simple – it literally just adds or removes VAT – and designed in a style we liked.

If you have found our online VAT calculator helpful, please share it with other people who you think it would benefit too.

How to add or remove VAT using our online VAT calculator

It could not be more easy to calculate VAT using our online VAT calculator. Just add in the amount you wish to add VAT to, or remove VAT from and it will do all the hard work for you!

Here’s what to do step-by-step:

  • Enter the amount you wish to add or remove VAT to/from into the calculator
  • Choose ‘Add VAT’ or ‘Remove VAT’
  • The calculation will automatically appear
  • If you wish to make another calculation just press ‘Reset’

The calculator is set to 20% and it will give you four figures:

  1. The net amount (excluding VAT)
  2. The amount of VAT
  3. The gross amount (including VAT)
  4. The figure the calculation is based on

These numbers give you all the information you should need regarding your VAT calculation.

How to manually calculate VAT

While our online VAT calculator is very handy, what happens if, for some reason you need to manually add or remove VAT from a number? Or if you want to set a spreadsheet up to automatically calculate for you?

To help you, we’re now going to show you how to add or remove VAT from a figure with a calculator (or in your head if you are good with numbers – unlike us!). We’ll also give you formulas you can use with Microsoft Excel or Google Sheets.

How to manually calculate VAT if you are adding VAT

If you wish to manually add VAT to a figure, this is the calculation you need to make:

[your figure] x 1.20 = your figure plus VAT.

So, for example if you wish to add VAT to £100, your calculation would look like this:

100 x 1.2 = 120

If you are inputting this as a formula into a spreadsheet, like Microsoft Excel or Google Sheets, you can use this formula:

=sum([cell with your figure]*1.2)

How to manually calculate VAT if you are removing VAT

If you wish to manually remove VAT from a figure, this is the calculation you need to make:

[your figure] / 1.20 = your figure minus VAT.

So, for example if you wish to remove VAT to £100, your calculation would look like this:

120 / 1.2 = 100

If you are inputting this as a formula into a spreadsheet, like Microsoft Excel or Google Sheets, you can use this formula:

=sum([cell with your figure]/1.2)

Please share this online VAT calculator

If you have found our online VAT calculator useful, please do share with with others!

Like this calculator? Try our freelance hourly rate calculator too.