UK VAT calculator
Add VAT to a net amount, or remove it from a gross amount, at the standard 20% rate or any other rate.
How to calculate VAT
To add VAT, multiply the net amount by 1 plus the rate: at 20%, £1,000 × 1.2 = £1,200, so the VAT is £200.
To remove VAT from a VAT-inclusive price, divide by 1 plus the rate: at 20%, £1,200 ÷ 1.2 = £1,000, so the VAT is £200. A quick check: at 20%, the VAT is one sixth of the gross price.
The UK has a standard rate of 20%, a reduced rate of 5% and a zero rate (rates at the time of writing, September 2026). Check which rate applies to your goods or services on GOV.UK.
Need help paying a VAT bill?
A VAT loan can pay HMRC on time and spread the cost over monthly repayments. Apply for VAT funding.
VAT calculation questions
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, £500 × 1.2 = £600, so the VAT is £100. At the 5% reduced rate, multiply by 1.05 instead.
How do I work out the VAT in a price that already includes it?
At 20%, divide the gross price by 6 to find the VAT, or divide it by 1.2 to find the net price. For example, £600 ÷ 6 = £100 of VAT and £600 ÷ 1.2 = £500 net. At 5%, divide the gross price by 21 to find the VAT.
What is the difference between zero-rated and VAT-exempt?
Zero-rated goods and services are taxable at 0%, so a VAT-registered business still reports them and can usually reclaim the VAT on its related costs. Exempt supplies are outside the VAT system, so no VAT is charged and the VAT on related costs generally cannot be reclaimed. GOV.UK lists which rate applies to common goods and services.
Can I spread the cost of a VAT bill?
Yes. You can ask HMRC for a Time to Pay arrangement, or use a VAT loan from a lender to pay HMRC in full on the due date and repay the lender monthly. A VAT loan avoids late payment penalties and interest from HMRC, but it has its own cost, so compare the two before you decide.
Is this VAT calculator accurate for my VAT return?
It gives the arithmetic for a single amount at the rate you choose. Your VAT return also depends on your accounting scheme, such as the Flat Rate Scheme or cash accounting, and on which of your sales and costs are standard-rated, reduced-rated, zero-rated or exempt. Your accountant should confirm the figures you file.
Need help applying this to your business?
A short conversation is often enough to know which lenders will look at your case and how to present it. There is no obligation, and it is free to enquire.