Margin Calculator
Find profit margin.
Add VAT to a net price or extract it from a VAT-inclusive price. The same maths works for sales tax and GST at any rate.
Gross = Net × (1 + rate ÷ 100) Net = Gross ÷ (1 + rate ÷ 100) VAT = Gross − Net
To remove VAT you divide by (1 + rate) rather than subtracting the rate: removing 20% VAT from 120 gives 100, not 96.
An invoice shows a total of $240 including 20% VAT, and you need the net amount and the VAT.
Divide the gross price by 1 plus the VAT rate as a decimal. At 20% VAT, a gross price of 120 ÷ 1.2 = 100 net, so the VAT is 20.
Because VAT is calculated on the net price, not the gross price. Subtracting 20% of the gross price removes too much.
Yes. Enter your combined state and local sales tax rate and use "Add VAT" to get the total price including tax.
Standard rates include 20% in the UK and France, 19% in Germany, 21% in Spain and the Netherlands, 10% GST in Australia and 5% GST in Canada (plus provincial taxes).