Use this sales tax and VAT calculator to add tax to a net price or remove tax from a gross price. Enter an amount and a tax rate, then choose the conversion direction. The calculator shows the converted price and the tax amount separately.
Here, net means the price before tax, and gross means the price including tax. These terms refer to prices—not net profit, gross profit, or take-home pay.
How to use the net to gross calculator
- Enter the Amount. Use the price before tax if you want to add tax, or the price including tax if you want to remove it.
- Enter the Tax percentage. For a 20% rate, enter 20. For an 8.25% rate, enter 8.25—not 0.0825.
- Choose the Conversion type. Select Net to gross to add tax, or Gross to net to remove tax.
- Read the results. Net to gross shows the Gross value and Tax amount. Gross to net shows the Net value and Tax amount.
The amount fields display dollars, but the percentage calculation is the same for other currencies. Keep all amounts in one currency; this tool does not perform currency conversion.
Sales tax and VAT calculation formulas
The calculator applies one percentage rate to the full net amount. In the formulas below, t is the tax rate entered as a percentage, such as 20 for 20%.
Add tax: net to gross
Gross price = Net price × (1 + t / 100)
Tax amount = Gross price − Net price
For example, a $100 net price with 20% tax becomes:
- Gross price: $100 × 1.20 = $120
- Tax amount: $120 − $100 = $20
Remove tax: gross to net
Net price = Gross price / (1 + t / 100)
Tax amount = Gross price − Net price
If a $120 price already includes 20% VAT, the reverse calculation is:
- Net price: $120 / 1.20 = $100
- Tax amount: $120 − $100 = $20
Do not subtract the tax percentage directly from the gross price. Subtracting 20% from $120 gives $96, not $100. The 20% tax was calculated on the $100 net price, not on the tax-inclusive total.
Worked examples
| Conversion | Amount entered | Tax rate | Converted price | Tax amount |
|---|---|---|---|---|
| Net to gross | $100.00 net | 20% | $120.00 gross | $20.00 |
| Gross to net | $120.00 gross | 20% | $100.00 net | $20.00 |
| Net to gross | $80.00 net | 8.25% | $86.60 gross | $6.60 |
These rates are examples, not recommendations for a particular location or product.
How to interpret and use your results
The tax amount is the difference between the before-tax and after-tax prices. With a 0% rate, net and gross prices are equal and the tax amount is zero.
- Prepare customer quotes: Start with your net selling price and add the applicable tax to estimate the customer’s total.
- Check receipts and invoices: Start with a tax-inclusive amount and the known rate to separate the underlying price from the tax.
- Compare supplier offers: Convert tax-inclusive and tax-exclusive quotes to the same basis. Whether tax is recoverable is a separate question.
- Plan a tax-inclusive selling price: Work backward from the amount customers will pay to see the price remaining before tax. That net price is not profit; product costs and other expenses still need to be covered.
Does the same calculation work for sales tax, VAT, and GST?
Yes—when a single percentage tax applies to the full net price, the arithmetic is the same for sales tax, value-added tax (VAT), and goods and services tax (GST). Their legal and accounting rules are not interchangeable.
U.S. sales tax generally applies at the retail sale. VAT and GST systems generally collect tax through multiple stages of the supply chain, with eligible businesses able to claim credits for qualifying tax paid on purchases. This calculator separates tax from a price; it does not determine tax credits, refunds, or the amount payable on a tax return.
Check these details before relying on the total
- Use the applicable rate. The calculator does not look up rates by address, product, or transaction date. For U.S. sales tax, confirm any state, county, city, and special district components rather than using a statewide average.
- Use the correct taxable base. Discounts, shipping, service charges, and exemptions can affect the amount subject to tax. Enter the taxable amount required by the applicable rules.
- Separate mixed-rate purchases. If an invoice contains items taxed at different rates, calculate each taxable group separately. One rate applied to the whole invoice may give the wrong result.
- Check rounding conventions. Rounding tax on each invoice line can produce a slightly different total from calculating tax on the combined amount. Keep full precision during intermediate calculations when checking the arithmetic.
- Do not use this as a margin-scheme calculation. Special VAT margin schemes may tax an eligible resale margin rather than the full selling price. Excise duties and compound taxes may also require separate treatment.
Related calculators for pricing decisions
- Reverse Sales Tax Calculator: focus on finding the price before tax from a tax-inclusive total.
- Gross margin calculator: compare selling price with cost to measure profitability. Keep the tax treatment consistent when entering revenue and costs.
- Discount Calculator: work out a reduced price before applying tax where the discount reduces the taxable amount.
Build a tax-aware pricing calculator for your website
If customers need estimates for your products or services, use Calcopolis to build a customized pricing calculator that combines your pricing rules with a clear before-tax, tax, and total-price breakdown.