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.
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
Enter the total invoice amount including VAT
Standard UK rate is 20%. Reduced is 5%, Zero is 0%.
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) | 1.20 | 83.33% | Most goods and services |
| 5% (Reduced) | 1.05 | 95.24% | Domestic fuel, children’s car seats |
| 0% (Zero) | 1.00 | 100% | Most food, books, children’s clothing |
| Exempt | N/A | 100% | Insurance, postage, finance (No VAT charged) |
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).
