Tax & Pricing
Tax-Exclusive Price Calculator
Remove VAT, GST, or sales tax from a gross price to find the original net (tax-exclusive) amount — useful for reclaiming VAT or comparing prices across tax jurisdictions.
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
Net Price (tax-exclusive) = Gross Price ÷ (1 + Tax Rate ÷ 100)
Tax Amount = Gross Price − Net Price
Example: Gross $120 at 20% VAT → Net = $120 ÷ 1.20 = $100 · Tax extracted = $20
Note: the tax rate is applied to the net, not the gross — so 20% of $100 = $20, not 20% of $120 = $24
Frequently Asked Questions
- Because tax is calculated on the net price, not the gross. At 20% VAT, $120 gross contains $20 tax ($100 net × 20%). If you multiply $120 × 20% = $24, that's wrong — you're calculating 20% of a price that already includes the tax.
- VAT-registered businesses reclaim input VAT they paid on purchases. To reclaim, they need the net and VAT amounts from gross invoices. This calculator performs that extraction instantly.
- Yes — reverse VAT (or de-VAT) is the process of extracting the net price from a VAT-inclusive gross price. The formula is Net = Gross ÷ (1 + rate). This calculator does exactly that.
- Tax-inclusive (gross) pricing shows the final price the customer pays, with tax embedded. Tax-exclusive (net) pricing shows the price before tax is added — common in B2B invoicing where the buyer reclaims VAT.