Currency: USD
Enter all amounts in USD. Changing currency keeps numbers unchanged; no exchange rate is applied.
- Total including tax
- $120.00
- Tax amount
- $20.00
- Net amount
- $100.00
How it works
Keep mixed VAT rates on separate bases
For a basket containing 100 net at an assumed 20% rate and 50 net at 10%, calculate each part separately: VAT totals 25. Applying either rate to the entire 150 would misstate the tax.
Extracting VAT from an inclusive price
A price of 120 including VAT at an illustrative rate of 20% contains 100 net and 20 VAT: 120 ÷ 1.20 = 100. Taking 20% of 120 would give 24 because it uses the wrong base. To add VAT instead, multiply the net price by 1.20. Use one currency consistently and select whether your known amount includes VAT. The entered rate is an assumption; the tool does not determine the applicable rate or whether VAT can be recovered.
VAT: formula and assumptions
Tax-exclusive total = net×(1+rate). Tax-inclusive net = gross/(1+rate).
The rate is your input. This calculator does not determine local tax applicability.
Tax from a selected known pair: formula and assumptions
Gross = net + tax = net × (1+rate).
Solve from the selected pair. Tax and rate cannot determine the net price when the rate is zero.
Worked example
Reference example currency: USD. These fixed examples do not change with your calculator preferences.
Using the VAT example:
- Amount ($)
- 100
- Tax rate (%)
- 20
- Amount includes tax?
- No — add tax
Tax-exclusive total = net×(1+rate). Tax-inclusive net = gross/(1+rate).
Example result
Total including tax: $120.00
Tax amount: $20.00
Net amount: $100.00
These are illustrative inputs. Change the values to explore a different scenario.
Formula references
- Investor.gov: financial tools (opens in a new tab)
- OpenStax: discounts, markups and sales tax (opens in a new tab)
References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.
Common questions
How is VAT extracted from a tax-inclusive price?
Net equals gross divided by one plus the entered rate. VAT is the difference. The known-pair mode can also start from tax amount and a positive rate.
Does this decide which VAT rate or exemption applies?
No. Rate selection, place of supply, exemptions and recoverability are outside this arithmetic model.
Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.