VAT Calculator

Add VAT to a price, or work out how much VAT is in a price that already includes it, at the UK's 20% standard rate, the 5% reduced rate or 0%.

Price before VAT

I want to

VAT rate

20% applies to most goods and services.

Price with VAT

£120.00

VAT at 20%: £20.00

VAT amount: £20.00
Price before VAT: £100.00

What this means

VAT adds £20.00 to every £100.00 you spend. It’s the same rate whatever you earn, so it takes a bigger share of a smaller income.

Next step

Plan a budget

Breakdown

Price before VAT	£100.00
VAT (20%)	£20.00
Price with VAT	£120.00

Quick VAT sums at 20%

Add VAT: multiply the price by 1.2.
Remove VAT: divide the price by 1.2.
VAT in a price that includes it: 1/6 of the price.

Assumptions in this estimate

Businesses must register for VAT once their taxable turnover for the last 12 months goes over £90,000.
Household electricity in Great Britain is zero-rated from 1 October 2026 to 31 March 2027; it stays at 5% in Northern Ireland, as do gas and other home fuels.

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UK VAT rates

Rate	What it applies to, for example
20% standard rate	Most goods and services
5% reduced rate	Gas for homes, children’s car seats, mobility aids, nicotine patches
0% zero rate	Most food, children’s clothes and shoes, books and newspapers

Household electricity in Great Britain is zero-rated from 1 October 2026 to 31 March 2027. It stays at 5% in Northern Ireland, and gas and other home fuels stay at 5%.

Some things are exempt from VAT altogether, such as postage stamps and most financial and property transactions.

Working it out

Adding VAT: price × 1.2 (at 20%)
Removing VAT: price ÷ 1.2
The VAT in a VAT-inclusive price: price ÷ 6

The calculator rounds to the penny. On an invoice with several items, VAT can be worked out per line or on the total, so the result can differ by a penny.

Last updated October 14, 2026

Frequently asked questions

How do I add VAT to a price?

Multiply the price by 1.2 to add 20% VAT. So £100 becomes £120. For the 5% rate, multiply by 1.05.

How do I remove VAT from a price?

Divide the VAT-inclusive price by 1.2. So £120 becomes £100. Don't just take 20% off, which would give £96, because the VAT was 20% of the price before VAT, not of the total.

How much of a VAT-inclusive price is VAT?

At 20%, one sixth of it. So a £120 price includes £20 of VAT. At 5%, it's one twenty-first.

When does a business have to register for VAT?

Once its taxable turnover for the last 12 months goes over £90,000. Businesses below that can register voluntarily.