VAT Calculator

Calculate VAT-inclusive and VAT-exclusive prices for a chosen rate.

Enter your values

Change any field. The result is recalculated on this device.

Formula, example and assumptions
Gross amount₹1,200.00
Indian rupees
%

Your result

Local calculation
Gross amount₹1,200.00

The gross amount includes VAT and the net amount excludes it. VAT-exclusive mode adds tax to the entered price; VAT-inclusive mode separates tax already contained in that price.

VAT rate (%)
20 %
Amount type
VAT exclusive
See how this is calculated

Result breakdown

Sales tax
₹200.00
Net amount
₹1,000.00
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Amount
₹1,000
VAT rate (%)
20 %
Amount type
VAT exclusive

Method

For VAT rate v%, gross = net × (1 + v ÷ 100). To extract VAT, net = gross ÷ (1 + v ÷ 100), and VAT = gross × v ÷ (100 + v).

Read the worked example and assumptions

How this calculation works

Separate the VAT component of a quoted gross price or add VAT to an exclusive quotation. This is invoice arithmetic for a user-entered rate, not a VAT return: output VAT, recoverable input VAT and partial exemption require additional records. Its mathematical engine is the same as the Sales Tax calculator; the distinction is the VAT-inclusive/exclusive invoice use case.

For VAT rate v%, gross = net × (1 + v ÷ 100). To extract VAT, net = gross ÷ (1 + v ÷ 100), and VAT = gross × v ÷ (100 + v).

Worked example

This example uses illustrative inputs. Your current result is shown above.

At an illustrative 20% VAT rate, an inclusive price of 1,200 monetary units contains 1,200 ÷ 1.20 = 1,000 net and 200 VAT. VAT is one-sixth of the inclusive price at this rate, rather than 20% of the inclusive price.

Assumptions and limits

  • Use the VAT rate applicable to the transaction; the default is an editable example and is not a universal or Indian GST rate.
  • The entire amount is taxed at one rate. Exempt, zero-rated and mixed-rate supplies, input-tax recovery and return-level rounding require separate treatment.

Questions people ask

Why divide by 1.20 when extracting 20% VAT?

The gross price represents 120% of the net price. Dividing by 1.20 recovers the original 100%; the remainder is VAT.

Is zero-rated the same as exempt?

Both can produce zero tax on an individual price, but their wider legal and input-tax consequences differ. This arithmetic tool does not decide either classification.

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