PennySum

VAT calculator

Add or remove UK VAT at the standard, reduced or zero rate, with the working shown.

Example values, change them. The answer updates as you type.

Before VAT when adding; including VAT when removing.

I want to
VAT rate
GOV.UK lists which rate applies to which goods and services.
£120.00 Full breakdown below
Price with VAT
£120.00
£100.00 plus £20.00 VAT at 20%
£100.00 Before VAT
£20.00 VAT
£120.00 Including VAT

Not yet fact-checkedMethod and sources

  • Before VAT £100.00 · 83%
  • VAT £20.00 · 17%

£100.00 plus VAT at 20% is £120.00.

How do you add or remove VAT?

To add VAT at the standard rate, multiply the price before VAT by 1.2. To remove it, divide the price including VAT by the same number. So £100 plus VAT is £120.00, and £100 including VAT is £83.33 before VAT.

How we worked it out

  1. £100.00 × 20% = £20.00 VAT
  2. £100.00 + £20.00 = £120.00

Why taking VAT off isn't the same as a discount

Removing VAT isn't the same as knocking 20% off the price. VAT is 20% of the price before VAT, so it is 20 parts in 120 of the price including VAT. Knocking 20% off £100 leaves £80.00, but the VAT inside £100 is only £16.67.

That is why the calculator divides by 1.2 to remove VAT, rather than multiplying by 0.8.

How VAT is rounded to the penny

VAT often works out at a fraction of a penny. We round each answer to the nearest penny, and half a penny rounds up. HMRC also lets a business round down the VAT payable on an invoice (VAT Notice 700, paragraph 17.5).

Worked examples

£100 before VAT, add standard-rate VAT

Amount £100I want to Add VATVAT rate Standard rate

£100.00 plus VAT at 20% is £120.00.

Your answer
£120.00
Before VAT
£100.00
VAT
£20.00
Including VAT
£120.00

£250 including VAT, take the VAT off

Amount £250I want to Remove VATVAT rate Standard rate

£250.00 including VAT at 20% is £208.33 before VAT.

Your answer
£208.33
Before VAT
£208.33
VAT
£41.67
Including VAT
£250.00

£60 before VAT, add reduced-rate VAT

Amount £60I want to Add VATVAT rate Reduced rate

£60.00 plus VAT at 5% is £63.00.

Your answer
£63.00
Before VAT
£60.00
VAT
£3.00
Including VAT
£63.00

Common questions

How much is VAT in the UK?

The standard rate of VAT in the UK is 20%, and it has been since 4 . Some goods and services are charged at the reduced rate of 5% or the zero rate.

How do you work out VAT on a calculator?

To add 20% VAT, multiply the price by 1.2; to remove it, divide by 1.2. So £100 × 1.2 = £120.00, and £100 ÷ 1.2 = £83.33.

How do you add VAT in Excel?

If the price before VAT is in cell A1, type =A1*1.2 for the price with VAT, or =A1*0.2 for the VAT alone. To take VAT off a price in A1, type =A1/1.2.

What are the three rates of VAT?

The UK has a standard rate of 20%, a reduced rate of 5% and a zero rate of 0%. Which one applies depends on the goods or service, and HMRC lists them by type.

How much is VAT on £500?

VAT at 20% on £500 is £100.00, making £600.00 in total. If £500 already includes VAT, the VAT inside it is £83.33 and the price before VAT is £416.67.

Do you need to charge VAT?

Check your turnover against the VAT registration threshold, with the dates that apply to you.

Check the threshold

More VAT calculators

Method and sources

Each calculator applies HMRC's published rates and rules, works in whole pence and rounds to the nearest penny. Every step is shown, and every figure links to its GOV.UK or HMRC page with the date we checked it. Before launch, each worked example is checked against HMRC's own guidance. Spot something wrong? Tell us and we will fix it and note the change.

  • Rounded to the nearest penny; half a penny rounds up.
  • Every item at the one rate you choose.