Net, gross, and the slice in the middle.
Three operations: turn a net price into a gross price, back out the tax from a gross figure, or just extract the tax slice. Region defaults the rate; override for reduced or zero-rated categories.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Region & rate
Region defaults
Generic standard rate.
Mode
What are you computing?
Verdict
Gross $ 1,150
At 15% vat.
Tax slice formula: gross × rate ÷ (1 + rate). The most common spreadsheet error in finance.
Result
All three numbers
Net
$ 1,000
VAT
$ 150
Gross
$ 1,150
Common questions
Net to gross — what's the formula?
Gross = Net × (1 + Rate). Going the other way, Net = Gross ÷ (1 + Rate). The 'tax slice' is Gross × Rate ÷ (1 + Rate). It's a small but commonly confused calculation.
What's the standard rate where I live?
Kenya 16% VAT, UK 20% VAT, South Africa 15% VAT, Nigeria 7.5% VAT, US ~7% sales tax (varies by state and locality). Switch region to use the regional default; override the rate manually if you have a reduced or zero-rated category.
Is VAT recoverable?
If you're VAT-registered, the VAT you pay on inputs is recoverable against the VAT you charge on outputs. The calculator shows headline numbers; net VAT due is output VAT minus input VAT, computed on your VAT return.
When does VAT registration become mandatory?
It varies. Kenya: KSh 5M turnover. UK: £90k taxable turnover. SA: R1M. Nigeria: ₦25M. US: depends on state nexus rules. Below threshold you may register voluntarily for input recovery.