Convert VAT to Price – Financial Converter
This calculator converts a net price and a VAT rate into the total price including VAT and the VAT amount. It is intended for bookkeeping, quoting, and invoice preparation where you start with a price excluding tax.
Use the VAT rate that applies in your jurisdiction and confirm rounding rules used in accounting or invoicing software. The tool performs basic mathematical conversion and should be used alongside official tax guidance for compliance.
Inputs
Results
Price (including VAT)
$120.00
VAT amount
$20.00
VAT multiplier (1 + rate)
1.2
| Output | Value | Unit |
|---|---|---|
| Price (including VAT) | $120.00 | — |
| VAT amount | $20.00 | — |
| VAT multiplier (1 + rate) | 1.2 | — |
Visualization
Methodology
Calculation uses elementary arithmetic: the VAT amount is the net price multiplied by the VAT rate; the gross price is net price plus VAT. The formulas are deterministic and documented below.
Accuracy and operational controls follow recognized engineering and information-handling practices: numeric handling is consistent with the IEEE 754 family for floating point arithmetic; development and QA processes are guided by quality management principles consistent with ISO 9001:2015; data protection and operational controls are aligned with ISO/IEC 27001:2013 and NIST cybersecurity best practices. Results are advisory and must be validated against local tax rules and invoice rounding policies.
Worked examples
Example 1: Net price 100.00, VAT rate 20% → VAT amount = 20.00, Gross price = 120.00.
Example 2: Net price 49.99, VAT rate 5% → VAT amount = 2.4995 (round according to local rule), Gross price ≈ 52.49 (rounding depends on jurisdiction or invoice-level rules).
Further resources
External guidance
Expert Q&A
Can I enter a gross price to get the net price and VAT?
This calculator converts from net price to gross price. To compute net price from a known gross price, use the reverse formula: Price (excluding VAT) = Price (including VAT) ÷ (1 + VAT rate ÷ 100). Use a dedicated reverse-mode tool if you need that regularly.
How should I handle rounding?
Rounding rules vary by jurisdiction and accounting policy. Results here are exact mathematical results; apply your legal or accounting rounding method (e.g., round per line item, round final total). For financial systems, follow IEEE floating-point handling and format final values as currency with two decimal places unless your locale specifies otherwise.
Is the VAT rate included up to 100%?
VAT rate input accepts 0–100%. Some jurisdictions allow rates above 100% for special levies, but typical VAT rates are far lower. Always confirm local tax regulations.
Are the results legally binding?
No. This tool provides computational assistance only. For legal, tax, or regulatory advice, consult a qualified accountant or tax authority. Use official tax publications to confirm rates and compliance rules.
Sources & citations
- NIST Cybersecurity and Risk Management Publications — https://www.nist.gov/publications
- ISO 9001 Quality Management — https://www.iso.org/iso-9001-quality-management.html
- ISO/IEC 27001 Information Security Management — https://www.iso.org/isoiec-27001-information-security.html
- IEEE Standards Overview (including IEEE 754 for floating point) — https://standards.ieee.org
- Occupational Safety and Health Administration (general operations guidance) — https://www.osha.gov
- European Commission — VAT (general guidance for rates and rules) — https://taxation-customs.ec.europa.eu/business/vat_en