VAT Calculator UK: Add or Remove VAT
Add or remove UK VAT and work out profit margin and markup in one place. Free.
In plain words: Enter a price to add VAT or take it off, and see your profit margin and markup. Margin is profit as a share of the selling price; markup is profit as a share of cost.
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Net Price (Ex-VAT) £100.00 VAT (20%): £20.00 · Gross: £120.00
Gross Profit & Margin %
£40.00 40.0% Margin
Profit as % of Net Selling Price Markup % on Cost 66.7% Markup Profit as % of Unit Cost (£60.00)
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How to Use VAT Calculator UK: Add or Remove VAT
- Enter your Unit Cost Price (ex-VAT) and your Selling Price.
- Choose the VAT rate (20% UK standard, 5% reduced, 0%, or the Irish or German standard rate) and whether your selling price includes or excludes VAT.
- Instantly view Net Price, VAT Amount, Gross Price (Inc VAT), Gross Profit (£), Gross Margin (%), and Markup (%).
UK VAT Formulas & Profit Margin vs. Markup Explained
Confusing Gross Margin with Markup — or calculating reverse VAT incorrectly — is one of the fastest ways for e-commerce sellers and contractors to erode profit. WeShoal's VAT, Profit Margin & Markup Calculator works out all three at once as you type.
1. How to Add and Remove 20% UK VAT
- Add 20% VAT (Net → Gross): Multiply the net figure by
1.20. (VAT =Net × 0.20). - Remove 20% VAT (Gross → Net): Divide the VAT-inclusive figure by
1.20(or multiply by5/6). Never subtract 20% directly from a gross price! For example, on £120 gross, the net price is£120 ÷ 1.20 = £100(VAT is £20, not £24).
2. Profit Margin vs. Markup
- Gross Margin %:
((Net Selling Price − Cost) ÷ Net Selling Price) × 100— shows what percentage of revenue is profit. - Markup %:
((Net Selling Price − Cost) ÷ Cost) × 100— shows how much you marked up your cost. A 50% markup on a £100 item gives a £150 selling price, which equals a 33.33% profit margin.