VAT Calculator

Created by Luis Hoyos
Based on research by
Schenk, A.; Oldman, O. Value Added Tax - A Comparative Approach (2007)See 3 more sources
Burg, D.F. A World History of Tax Rebellions: An Encyclopedia of Tax Rebels, Revolts, and Riots from Antiquity to the Present (2003)James, K. The Rise of the Value-Added Tax (Cambridge Tax Law Series) (2015)Krugman, P.; Wells, R. Economics, Fifth Edition (2017)
Last updated: Jul 07, 2022

If you're searching for how to calculate VAT, this online calculator is what you need. With this tool, you can:

  • Calculate the tax amount and gross price, given the net price and VAX percentage.
  • Calculate tax from gross, given the gross and the net price.

Knowing the amount of tax you're paying, and the unit price of the products you acquire can help you make better economic decisions. Even if you're not still a very active economic part of the market, it can help you to get better test grades if you're studying economics. For that reason, we created this VAT tax calculator.

The formula used by this VAT calculator

The formula used by this tool to calculate the tax amount is:

tax amount = net price × VAT

where:

  • tax amount — the amount of money corresponding to the tax;
  • net price — the price before applying the tax; and
  • VAT — Value added tax, the percentage of the net price that the government charges.

Once you know the tax amount, you can calculate the gross price:

gross price = net price + tax amount

Or express it in terms of the VAT:

gross price = net price × (1 + VAT)

💡 Does the previous formula seem familiar to you? It's analog to the compound interest formula:

FV = P (1 + r/m)ᵐᵗ

  • The future value (FV) is analogous to the gross price.
  • The net price is analog to the present value (P)
  • The r/m ratio is analog to the VAT.

The only difference is the mt exponent that causes an exponential growth of the future value.

Sometimes, we want to calculate the tax amount and don't know the net but only the gross price. The following section will show how to calculate VAT from gross.

How to calculate VAT from gross?

We can calculate VAT from gross using the formulas or the VAT tax calculator.

  • Using formulas:

From the previous equations, we can generate a formula to calculate the tax amount we're paying from the gross price:

tax amount = gross price / (1 + 1/VAT)

On the other side, if we know the tax amount and want to calculate the VAT percentage:

VAT = 100% × tax amount / (gross price - tax amount)

  • Using this calculator:
    • To calculate the VAT percentage from gross and tax amount:
      • 1. Input the gross price.
      • 2. Unlock the VAT variable by clicking on the padlock on the right side of the box.
      • 3. Input the tax amount.
    • To calculate the amount of tax from the gross and the VAT percentage:
      • 1. Input the VAT percentage.
      • 2. Input the gross price.

That's it! That's how you calculate VAT from gross.

Luis Hoyos
VAT
%
Net price
$
Gross price
$
Tax amount
$
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