What is the difference between tax-inclusive and tax-exclusive?

Tax-exclusive means the tax is added onto the base price (standard in the US). Tax-inclusive means the price already includes the tax amount (standard for VAT in Europe and many other regions).

How do I calculate VAT back to the net price?

Select the 'tax-inclusive' toggle. The calculator will divide the total amount by (1 + tax rate) to find the original pre-tax price. For example, at a 20% VAT, you divide by 1.20.

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Finance

Sales Tax & VAT Calculator - Gross and Net Price

Calculate sales tax or VAT for any amount. Easily toggle between tax-inclusive and tax-exclusive pricing for transparent shopping and business billing.

Taxes are an unavoidable part of commerce, but they often make it difficult to know the true price of an item or service. Depending on where you live, the price you see on a shelf might be the 'net' price (before tax) or the 'gross' price (after tax). Businesses also need to quickly 'strip' tax from a total to understand their actual revenue. Our Sales Tax / VAT Calculator is a dual-purpose tool that allows you to either add tax to a base amount or calculate the pre-tax value from a total, providing clarity for both consumers and professionals.

Amount

Tax Rate (%)

Amount is tax-inclusive

Total (Gross) Amount

120.00

Total amount: 120.00 (Tax: 20.00)

Amount100

Tax Rate (%)20%

Amount is tax-inclusiveNo

Net Amount (Pre-tax)100.00

Tax Amount20.00

How it Works

The tool uses two distinct formulas depending on your selection. If adding tax, it multiplies the base by the rate. If removing tax, it uses the inverse division formula to accurately separate the tax portion from the total.

Calculation Formula

Total = Net × (1 + Rate) | Net = Total / (1 + Rate)

Calculation Examples

1. **Adding Tax**: A $100 item with 8.25% sales tax costs **$108.25**.

Why use this tool in your daily life?

Don't be surprised at the register. Use this tool while shopping or invoicing to ensure your math is 100% correct, avoiding costly errors in your personal or business accounting.