VAT Calculator (Any Rate)
Enter any rate to add VAT, GST or sales tax to a price, or remove it from a tax-inclusive total. Works for any country.
Enter any rate to add VAT, GST or sales tax to a price, or remove it from a tax-inclusive total. Works for any country.
Every formula used by these calculators. They match the FNSACC323 Perform financial calculations unit.
Markup calculates profit as a percentage of the cost price. Profit Margin calculates profit as a percentage of the selling price.
Fixed Costs stay the same no matter how much you sell (e.g. rent, insurance). Variable Cost is what it costs to make or deliver one single unit (materials, packaging, per-item shipping) — it goes up and down with sales, unlike fixed costs. Selling Price is what you charge per unit.
Write the rate as a decimal: 20% is 0.20, 7.5% is 0.075. So at 20% you multiply or divide by 1.2, and at 7.5% by 1.075.
Example at 19%. A 300.00 net price becomes 300 × 1.19 = 357.00. The tax is 57.00.
A 357.00 total including tax is 357 ÷ 1.19 = 300.00 before tax.
At 20% that is one sixth of the total. At 10% it is one eleventh. At 15% it is three twenty-thirds.
Subtracting the percentage from a tax-inclusive price always takes off too much, because the percentage is being applied to a bigger number than the one the tax was originally calculated on. Divide instead.
Multiply the price by 1 plus the VAT rate as a decimal. At 20%, multiply by 1.2.
Divide the VAT-inclusive price by 1 plus the rate. At 20%, divide by 1.2.
They work the same way. Both are a percentage added to the price at each sale; the name depends on the country.