Reverse VAT calculator: remove VAT from a total price
Already have a VAT-inclusive price and need the net figure? Enter the total below and this calculator works backwards to show the net amount and the VAT that's included in it.
The reverse VAT formula
To remove VAT from a gross (VAT-inclusive) price, divide by 1 plus the VAT rate expressed as a decimal, not by subtracting the percentage directly:
- Standard rate (20%): Net = Gross ÷ 1.20
- Reduced rate (5%): Net = Gross ÷ 1.05
- VAT amount: Gross − Net
Example: a laptop priced at £1,200 including VAT has a net price of £1,200 ÷ 1.20 = £1,000, with £200 of VAT included.
Remove VAT from a price
Enter an amount in pounds and pence.
Frequently asked questions
How do you calculate VAT backwards from a total? +
Divide the VAT-inclusive total by 1 plus the VAT rate as a decimal. For the standard 20% rate, divide by 1.20. For example, £120 ÷ 1.20 = £100 net, meaning the VAT element is £20.
What is the formula to remove VAT from a price? +
Net amount = gross amount divided by (1 + VAT rate). VAT amount = gross amount minus net amount. At the UK standard rate of 20%, that's net = gross divided by 1.20.
Why can't I just take 20% off the total price? +
Because the 20% was worked out on the smaller net price, not the total. Taking 20% off the total overcorrects: £120 minus 20% is £96, not the real net figure of £100. Divide by 1.20 instead of subtracting 20%, and you'll get the right answer.
Does this work for the 5% reduced rate too? +
Yes. Select 5% in the calculator above and it will divide by 1.05 instead of 1.20, giving the correct net and VAT figures for reduced-rate goods and services.
Need to add VAT instead? Try the VAT Calculator, or see the full guide to VAT formulas.