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Invoice Tax Calculator

Add tax to a price, or take it out of one, and see both figures at once.

That amount is

Quick Tool Overview

The Invoice Tax Calculator adds tax to a net price and strips it out of a gross one at the same time, preventing the commonest invoice error there is — multiplying a tax-inclusive price by the rate, which gives £24 on a £120 price that contains £20.

What it does
Adds or removes tax at any rate
You give it
An amount and a rate
You get back
Net, tax and gross, with the working
Best for
Checking a price either way round
Invoice Tools Free, unlimited use No sign-up Runs in your browser

About the Invoice Tax Calculator

The mistake this prevents is worth naming: taking a tax-inclusive price and multiplying it by the tax rate. A £120 price that already includes 20% tax contains £20 of tax, not £24 — because the tax is 20% of the £100 net, not of the £120 gross. Getting this backwards understates your net revenue and overstates what you owe, every time.

So this works in both directions at once. Enter a net price and it adds the tax; enter a gross price and it divides it out; and either way you see the net, the tax and the gross together, with the arithmetic shown rather than asserted.

It handles any rate, including the awkward ones — Switzerland’s 8.1%, India’s 0.25% on rough diamonds, Nigeria’s 7.5% — and rounds to the number of decimals the currency actually has, which is where a multi-currency invoice quietly goes a cent out.

Key features of the Invoice Tax Calculator

Both directions at once

So the wrong one is visible rather than assumed.

Correct inclusive maths

Divide by one plus the rate, not multiply by the rate.

Any rate

Including fractional ones like Switzerland’s 8.1% and Nigeria’s 7.5%.

Currency precision

Rounded to the decimals the currency actually has.

Working shown

Every step, so the figure can be checked rather than trusted.

How to use the Invoice Tax Calculator

  1. 1

    Enter an amount

    Whatever figure you have — net or gross, it does not matter.

  2. 2

    Say which it is

    Tax-exclusive means tax gets added; tax-inclusive means it is already in there.

  3. 3

    Set the rate

    Any rate, including fractional ones. Common national rates are one click away.

  4. 4

    Read all three figures

    Net, tax and gross, with the working shown.

  5. 5

    Check the reverse

    The panel shows what the other direction would have given, which is the usual error.

Frequently asked questions

Divide by one plus the rate to get the net, then subtract. At 20%, £120 ÷ 1.2 = £100 net and £20 tax. Multiplying £120 by 20% gives £24 and is the commonest tax error on an invoice.

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