Gross to Net Invoice Calculator

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Gross to Net Invoice Calculator

Instantly extract the net amount and VAT from your gross invoice total. Accurate, free reverse VAT calculator for UK businesses, freelancers, and accounting.

💷 UK VAT Compliant
🧮 Precise Calculations
Instant Results
📱 Mobile Friendly

Calculate Your Net Amount

Enter your total gross invoice amount and the applicable VAT rate below to instantly extract the net value and the exact VAT portion.

Reverse VAT Converter

Enter the gross total to see the net and VAT breakdown

🧾 Invoice Details

Enter the total invoice amount including VAT

Standard UK rate is 20%. Reduced is 5%, Zero is 0%.

📐 Conversion Info
Formula: Net = Gross / (1 + (VAT% / 100))
VAT Amount: Gross – Net

Invoice Breakdown

Based on standard UK HMRC calculation methods

UK VAT Rate Reference Chart

Common UK VAT rates and their corresponding division factors for quick mental math or spreadsheet formulas.

VAT Rate Divide Gross By Net Percentage Common Applications
20% (Standard)1.2083.33%Most goods and services
5% (Reduced)1.0595.24%Domestic fuel, children’s car seats
0% (Zero)1.00100%Most food, books, children’s clothing
ExemptN/A100%Insurance, postage, finance (No VAT charged)
⚠️ Important Accounting Note: This calculator provides standard mathematical extractions. For official HMRC submissions, always ensure your accounting software is configured correctly, and be aware that some schemes (like the Flat Rate Scheme) calculate VAT differently based on gross turnover.

Gross to Net Conversion FAQ

Everything you need to know about extracting VAT and understanding invoice totals.

To calculate the net amount from a gross total, divide the gross amount by (1 + the VAT rate as a decimal). For example, for a gross amount of £120 with a 20% VAT rate, divide £120 by 1.20, which gives a net amount of £100.

The formula to extract VAT is: VAT Amount = Gross Amount – (Gross Amount / (1 + VAT Rate)). Alternatively, for a 20% VAT rate, you can simply divide the gross amount by 6 to find the VAT portion.

The ‘net’ amount is the actual price of the goods or services before any taxes are added. The ‘gross’ amount is the final total the customer pays, which includes the net amount plus any applicable VAT or taxes.

In the UK, the standard VAT rate is 20%. There is also a reduced rate of 5% for certain goods and services (like domestic fuel), and a 0% rate for zero-rated items (like most food and children’s clothing).

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