Gross ↔ Net Calculation
Value Added Tax (VAT) or Sales Tax applies to most goods and services worldwide. Our VAT Calculator helps you quickly convert between gross and net amounts – whether you're checking invoices, comparing offers, or preparing your accounting.
Net to Gross: Gross = Net × (1 + VAT Rate/100)
Example: $100 × 1.20 = $120 Gross (at 20% VAT)
Gross to Net: Net = Gross / (1 + VAT Rate/100)
Example: $120 / 1.20 = $100 Net
VAT Amount: VAT = Gross - Net
Example: $120 - $100 = $20 VAT
EU: 17-27% standard rate (Luxembourg lowest, Hungary highest)
UK: 20% standard, 5% reduced, 0% for essentials
USA: No federal VAT – sales tax varies by state (0-10%+)
Canada: GST 5% + provincial PST (varies)
Australia: GST 10%
VAT is charged at each stage of production (with credits for tax paid on inputs). Sales tax is typically only charged at final sale to consumer. VAT is common in EU/UK, while sales tax is used in the USA. The calculation for end consumers is effectively the same.
Businesses can reclaim VAT paid on purchases (input tax) and deduct it from VAT charged on sales. Only VAT-registered businesses can do this – consumers pay full VAT with no reclaim option.
Yes, many countries exempt or reduce VAT on essentials: food, medicine, children's clothing, books, public transport. Exemptions vary significantly by country. Zero-rated means 0% VAT but business can still reclaim input VAT; exempt means no VAT at all.
Exports are typically zero-rated (no VAT charged). Imports usually incur VAT at destination. EU has special rules for intra-community supplies. E-commerce sellers may need to register in multiple countries above certain thresholds.
Tip: When comparing international prices, always consider VAT differences. A lower price in one country might be higher after adding local VAT!
Whether you're a freelancer issuing invoices, a business owner handling taxes, or a traveler wanting to understand the real cost of goods: A precise VAT Calculator is essential. Manually calculating Gross from Net or vice versa can be tricky and prone to errors, especially when dealing with different tax rates.
Our tool simplifies this process. It instantly calculates the missing values based on your input, ensuring accuracy for your financial needs.
Using this calculator is straightforward:
The results for Net, Tax amount, and Gross total will appear instantly.
Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain and at final sale.
To find the gross amount, you multiply the net amount by $(1 + \frac{Rate}{100})$.
$$ \text{Gross} = \text{Net} \times (1 + \frac{\text{Rate}}{100}) $$
To reverse the process and find the net amount from the gross, you divide by the same factor.
$$ \text{Net} = \frac{\text{Gross}}{1 + \frac{\text{Rate}}{100}} $$
$$ \text{VAT Amount} = \text{Gross} - \text{Net} $$
VAT stands for Value Added Tax. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services.
Yes, VAT rates vary by country and by product type. Most countries have a standard rate and reduced rates for essentials like food, books, or children's clothing.
For a 20% rate: Multiply the net price by 0.20 to get the tax. Add it to the net to get the gross. Or multiply net by 1.20 to get gross directly.
Not exactly. Sales tax is collected only at the final sale to the consumer. VAT is collected at every stage of production and distribution, though the consumer ultimately bears the cost.
You buy an item for $120.00 (Gross) and the VAT rate is 20%.
To find the Net price:
$$ \text{Net} = 120 / 1.20 = 100.00 $$
The VAT amount is:
$$ 120 - 100 = 20.00 $$