What is the difference between GST and VAT?

They work the same way — tax collected at each stage of supply with credit for tax already paid. The name simply differs by country.

Does this calculate income tax?

No. Income tax uses progressive bands and personal allowances that differ by country; this tool handles flat-rate consumption taxes.

How do I handle multiple tax components?

Where a total splits into components such as CGST and SGST, calculate the combined rate here and then halve the tax figure.

GST / Sales Tax Calculator

Add tax to a net price, or strip it out of a tax-inclusive total. The second calculation catches people out constantly — you cannot simply subtract the percentage.

Fill in the fields above and select Calculate to see your result and the full working.

Please note: Financial calculators produce estimates using the figures you enter. They exclude fees, taxes, insurance and rate changes unless a field asks for them. They are not financial advice — confirm any significant decision with a qualified adviser or your lender.

Formula used

Adding tax: total = net × (1 + rate ÷ 100). Removing tax: net = gross ÷ (1 + rate ÷ 100)

How to use this calculator

Enter the amount you have.
Set the tax rate that applies — 20% UK VAT, 18% Indian GST, or whatever your local rate is.
Choose whether that amount already includes tax.
Read the net, tax and gross figures for your invoice or bookkeeping.

Example calculation

A ₹1,000 net price with 18% GST:

Tax = 1,000 × 0.18 = ₹180 → total ₹1,180

Reversing it: 1,180 ÷ 1.18 = ₹1,000 net, confirming ₹180 of tax.

What does this result mean?

The inclusive calculation is the one people get wrong. Taking 20% off a £120 gross figure gives £96, but the correct net is £100, because the tax was 20% of the net, not of the gross. Dividing by 1.20 is the only correct method. Businesses registered for GST or VAT normally reclaim input tax, so the net figure is the one that hits their accounts.

Frequently asked questions

What is the difference between GST and VAT?: They work the same way — tax collected at each stage of supply with credit for tax already paid. The name simply differs by country.
Does this calculate income tax?: No. Income tax uses progressive bands and personal allowances that differ by country; this tool handles flat-rate consumption taxes.
How do I handle multiple tax components?: Where a total splits into components such as CGST and SGST, calculate the combined rate here and then halve the tax figure.

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