The sales tax and VAT calculator adds a percentage tax to a tax-exclusive price or extracts the tax component from a tax-inclusive total. It clearly displays net price, tax amount, and gross price.
How to use this calculator
Enter the price and applicable rate, then select whether the entered amount excludes or includes tax. Exclusive mode multiplies by one plus the rate. Inclusive mode divides by one plus the rate to recover the net amount.
Formula & calculation method
Gross = net × (1 + rate/100); net = gross / (1 + rate/100)Tax in inclusive mode is gross minus the recovered net, not simply gross multiplied by the tax rate. This distinction is important because the tax-inclusive total contains both net price and tax.
Worked example
A net price of 100 with 15% tax produces 15 tax and a gross total of 115. Starting from 115 inclusive recovers 100 net and 15 tax; calculating 15% of 115 would give an incorrect tax component.
Why this is useful
Two modes support invoice preparation and receipt analysis without confusing tax-on-net with tax-as-a-share-of-gross. Separate outputs make each part of the calculation auditable.
Limitations to keep in mind
Actual tax rules may include multiple rates, exemptions, rounding requirements, or taxes that are not recoverable by simple division. Confirm the applicable rate and legal invoice treatment with a qualified source.
Frequently asked questions
Why can't I multiply an inclusive price by the tax rate?
The inclusive price contains tax itself. The tax portion must be recovered by dividing out the full tax factor first.
Can the rate be zero?
Yes. Net and gross prices are then equal and the tax amount is zero.
Does the calculator determine my local tax rate?
No. You must enter the correct applicable rate; rates and exemptions are not looked up automatically.