Add VAT to a net price
Turn a tax-exclusive price into the final price your customer sees.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
In short
- What it calculates
- Turn a tax-exclusive price into the final price your customer sees.
- Formula used
Tax = net × rate ÷ 100- Example
- Net price of £850 with 20%:
Add VAT calculator
Built for anyone working with net prices who needs the shelf or invoice price.
The result includes the total rounded to two decimals, exactly as it will appear on the document.
How it works
The rate is applied to the net amount and added. It is the direct operation, the reverse of the VAT-inclusive calculator.
Formula
Tax = net × rate ÷ 100
Final price = net × (1 + rate/100)
Worked example
Net price of £850 with 20%:
Tax: £170
Final price: £1,020
Explanation
Adding tax is simpler than removing it
Starting from the net amount and adding the percentage is a straight multiplication, without the pitfall of the division that appears when working backwards. That is why professional quotes are always drafted on the net amount: the price of the work is agreed and the tax added on top, with no argument about who bears what.
Quotes and surprises
A quote that does not state whether tax is included is a reliable source of conflict. The difference between 1,000 including tax and 1,000 plus tax is over two hundred euros at a twenty-one per cent standard rate. Consumer rules usually require the total price to be shown to final consumers.
Rounding by lines
If an invoice has several lines at the same rate, the correct approach is to add the net amounts and apply the tax to the total for each rate, not line by line. That prevents individual roundings from accumulating and throwing out the total.
Withholding on account
In some countries, professionals' invoices also carry a withholding on the net amount, which is deducted from the total payable but does not affect the indirect tax calculation. They are two independent operations on the same base.
Frequently asked questions
How is rounding handled on an invoice?
The usual practice is to round the total to two decimals, to the nearest cent, which is what the last result shows.
What if one invoice has several rates?
Work out each net amount separately with its own rate and add the totals afterwards.
Should a quote include tax?
Between businesses it is usual to present it net and add tax separately. For final consumers, consumer rules generally require the total price.
Is tax applied line by line or to the total?
The usual approach is to add the net amounts for each rate and apply the percentage to that subtotal, so individual roundings do not unbalance the invoice.
Need to calculate something else?
These tools are often used alongside this calculator.
VAT
Add VAT or sales tax to a net amount at whatever rate you need.
VAT included
Break a tax-inclusive price down into the net amount and the tax.
Selling price
Set your price from the cost and the margin or markup you want to achieve.
Percentage tax
Add, remove or withhold any tax expressed as a percentage.
Brazil ICMS
Add or remove Brazil ICMS at the rates in force.
Mexico IVA
Add or remove Mexico IVA at the rates in force.