Tax-Inclusive vs Exclusive Price Calculator
Convert a price between tax-inclusive and tax-exclusive, and see the exact tax amount either way — for VAT, GST or sales tax.
How it works
Net = inclusive ÷ (1 + rate%) · Gross = exclusive × (1 + rate%) · Tax = gross − net
Extracting tax from a tax-inclusive price is not the same as taking that percentage off the total — you divide by (1 + rate), you do not subtract the rate. On a 20% tax, an inclusive price divided by 1.2 gives the net, and the tax is the difference. Going the other way is simpler: multiply the net by (1 + rate) to add the tax on top.
Worked example
A $120 shelf price that includes 20% tax has a net of 120 ÷ 1.20 = $100, so the tax is $20. Note that simply taking 20% of $120 gives $24 — too much — which is why the divide-by-(1+rate) step matters.
Frequently asked questions
How do I remove tax from an inclusive price?
Divide by (1 + rate). For 20% tax on a $120 inclusive price: 120 ÷ 1.20 = $100 net, and the tax is $20. Do not just subtract 20% of $120.
Why can’t I subtract the tax rate from the total?
Because the rate was applied to the smaller net amount, not the total. Subtracting 20% of the gross over-removes tax. Dividing by 1.20 reverses the original multiplication exactly.
Does this work for VAT and GST?
Yes — VAT, GST and sales tax all use the same add-on percentage mechanic, so the inclusive/exclusive conversion is identical. Just enter the correct rate.
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This calculator is for educational purposes. Double-check important results before acting on them.