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VAT & Sales Tax Calculator
Working tax backwards is where people slip: you cannot subtract the rate from a gross price. Dividing by one plus the rate is the only correct way. Pick a direction, enter any rate, and the tool shows the net amount, the tax and the total.
How to use it
- Enter the amount you have.
- Enter the tax rate that applies where you are.
- Choose whether to add tax to it or take tax out of it.
Examples
- 100 net at 21% → 21 of tax and 121 gross.
- 121 gross at 21% → 100 net, not 95.59 as subtracting 21% would suggest.
- Invoicing at 19%: enter the fee and add tax to get the number that goes on the invoice.
Questions people ask
Why can't I just subtract the rate to remove tax?
Because the rate was applied to the smaller net figure, not to the total. Removing 21% from 121 gives 95.59, but the true net is 100. Always divide the gross by 1 plus the rate — 121 ÷ 1.21 — to get back.
Which rate should I use?
The one that applies to your goods or services where you trade. Rates differ by country and often by product category within a country, with reduced rates for food, books or medicine. Check your tax authority rather than assuming a standard rate.
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Updated: 2026-08-07