Adding and removing tax correctly
Adding tax is simple multiplication. Removing it trips people up: you can't subtract the rate from the gross price, because the tax was calculated on the smaller net amount. This calculator does both properly, with exact decimal maths, so totals always add up.
Formulas
- Gross = net × (1 + rate ÷ 100)
- Tax = net × rate ÷ 100
- Net from gross = gross ÷ (1 + rate ÷ 100)
Common rates
Rates vary by country and product: for example, 20% standard VAT in the UK, 19% in Germany, 18% GST in India, 10% GST in Australia and 5% VAT in the UAE. Check your tax authority for reduced rates and exemptions.
Billing a customer? The invoice generator applies tax per line and shows it separately on the PDF.
Selling at a profit? Work out your margin before tax with the profit margin calculator, and give customers a proper payment receipt showing the tax.