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Page written by Ian Hawkins. Last reviewed on March 6, 2026. Next review due April 6, 2027.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
To calculate Value Added Tax (VAT), you’ll need to follow these steps:
1. Determine the VAT Rate: First, find out the applicable VAT rate for the goods or services in question. In the UK, there are different rates for various items.
2. Calculate the VAT Amount: To calculate the VAT amount, multiply the original price by the VAT rate (expressed as a decimal). For example, if the original price is £100 and the VAT rate is 20%, the calculation would be:
VAT Amount = Original Price × VAT Rate
= £100 × 0.20
= £20
3. Total Price Including VAT: To find the total price including VAT, add the VAT amount to the original price:
Total Price = Original Price + VAT Amount
= £100 + £20
= £120
4. Total Price Excluding VAT: Conversely, if you have the total price including VAT and you want to find out the original price before VAT, you can use this formula:
Original Price = Total Price / (1 + VAT Rate)
Using the previous example:
Original Price = £120 / (1 + 0.20)
= £120 / 1.20
= £100
These calculations are essential for businesses and individuals to accurately handle VAT in transactions. Remember to always use the correct VAT rate for the specific goods or services you’re dealing with.
Swoop Finance Limited helps UK firms access business finance by working directly with businesses and their trusted advisors. We act as a credit broker, not a lender, and do not provide loans or finance products ourselves. We introduce applicants to a panel of lenders, equity funds, and grant agencies based on individual circumstances and creditworthiness.
Commission Disclosure: We typically receive a commission from the finance provider (either a fixed fee or a fixed percentage of the amount you receive) upon successful placement. Different providers pay different rates. For certain lenders, we may have influence over the interest rate, which can impact the total amount payable under your agreement.
Regulatory Information:
FCA: Authorised and regulated by the Financial Conduct Authority as a credit broker (FRN: 936513) and registered as an Account Information Services Provider (Ref: 833145).
ICO: Registered with the Information Commissioner’s Office (Ref: ZA600162); registration can be verified at ico.org.uk.
Company Details: Registered in England & Wales with Companies House (No. 11163382). Registered Address: The Stable Yard, Vicarage Road, Stony Stratford, Milton Keynes, MK11 1BN. VAT Number: 300080279.
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