VAT and sales tax calculator
Type an amount and your tax rate to see the net amount, the tax and the gross total. Use it to add tax to a price before you quote it, or to find out how much of a tax-inclusive shelf price is actually yours.
Calculator
Enter the rate that applies to this product in your country.
Result
- Net amount
- Tax
- Gross amount
The calculation runs in your browser; the numbers you enter are not sent anywhere.
To add tax: gross = net × (1 + rate). To remove tax from a gross price: net = gross ÷ (1 + rate), and tax = gross − net. At a 20% rate, a gross price of 120 contains 20 of tax, not 24.
The two formulas behind the calculator
Every VAT, GST or sales tax calculation comes down to one relationship: the gross amount equals the net amount plus tax, and the tax is a percentage of the net amount. Which formula you use depends on whether your starting number already includes tax.
The calculator applies these exact steps, rounding only when it shows the result:
- Adding tax: tax = net × rate; gross = net + tax
- Removing tax: net = gross ÷ (1 + rate); tax = gross − net
- Rate as a decimal: 20% is 0.20, 8.5% is 0.085
Why you cannot just take the percentage off
The tax rate is applied to the net price, so it is a smaller share of the gross price. Multiplying a tax-inclusive price by the rate overstates the tax every time, and the gap grows with the rate.
The table shows the difference on three tax-inclusive prices that all hide a net price of 100:
| Gross price | Rate | Real tax | Price × rate (wrong) |
|---|---|---|---|
| 105 | 5% | 5 | 5.25 |
| 110 | 10% | 10 | 11 |
| 120 | 20% | 20 | 24 |
Shelf prices, quotes and your own reports
Shops that sell to consumers usually display tax-inclusive prices, while wholesalers and service businesses often quote net prices to other businesses. Both are fine as long as everyone knows which one is on the page. A quote that says only “total” invites an argument later.
Tax rules, rates and exemptions differ by country and often by product, so this page does not suggest a rate. Check the rate with your tax office or accountant and type it in yourself. The calculator works the same way for VAT, GST or a local sales tax.
Practical scenario
Example: what is left of a 59 shelf price?
A stationery shop sells a backpack for 59, tax included, and the product's rate is 18%. The net price is 59 ÷ 1.18 = 50 and the tax is 9. If the shop had taken 18% of 59, it would have expected 10.62 of tax and underestimated its own revenue by 1.62 on every backpack.
Step-by-Step Implementation
1. Choose the direction
Pick “add tax” if you start from a net price, or “remove tax” if the price you have already includes it.
2. Enter the amount and rate
Type the amount and the rate for that product. A currency is optional; without one, results appear as plain numbers.
3. Let GiroPS do it on every line
In GiroPS each product has its own tax rate and a setting for whether its price includes tax. Quotes, orders and invoices then split net, tax and total per line, and the tax report adds up the tax on sales and purchases.
Common Pitfalls & How to Avoid Them
Frequently Asked Questions
How do I add VAT to a price?
Multiply the net price by (1 + rate). A net price of 250 at 8% becomes 250 × 1.08 = 270, of which 20 is tax.
How do I calculate the VAT included in a price?
Divide the gross price by (1 + rate) to get the net price, then subtract it from the gross price. At 20%, a price of 60 contains 60 − 60 ÷ 1.2 = 10 of tax.
Does this calculator know my country's rate?
No, on purpose. Rates and exemptions vary by country and product and they change, so you enter the rate yourself. The same formulas work for VAT, GST and sales tax.
Why does my result have so many decimals?
Removing tax rarely gives a round number. The calculator shows up to two decimals; on invoices, follow your local rounding rules, which are usually applied per line or per total.