When to use this calculator
Remove an included VAT or GST percentage from a gross amount. Assumes one tax rate is already included. Country-specific VAT or GST rules are not supplied.
Explore the pricing & break-even calculators for other questions in this topic. For a related calculation, use the Asset Book Value Calculator: Subtract entered accumulated depreciation from an asset’s original cost.
PUTTING IT INTO PRACTICE
VAT Reverse: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Tax-inclusive amount | 120 |
| Included tax rate (%) | 20 |
| Result | 100 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: Pre-tax amount = gross/(1+tax rate/100).
- The result is 100 currency units, rounded for display.
How to interpret your result
Assumes one tax rate is already included. Country-specific VAT or GST rules are not supplied.
Margin uses sales revenue as its denominator, while markup uses cost. Contribution deducts variable costs before fixed costs. Break-even calculations assume the same prices, variable costs and product mix remain in place.
Frequently asked questions
Why are margin and markup percentages different?
They use different bases. The same monetary profit is divided by selling price for margin and by cost for markup.
When is the vat reverse calculator useful?
Remove an included VAT or GST percentage from a gross amount. Assumes one tax rate is already included. Country-specific VAT or GST rules are not supplied.
How do I use the vat reverse calculator?
Enter tax-inclusive amount, included tax rate (%). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Pre-tax amount = gross/(1+tax rate/100).
What should I check before using the result?
Assumes one tax rate is already included. Country-specific VAT or GST rules are not supplied.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Calculators Map editorial process · Updated · Methods and limitations