Whether you divide or multiply matters: removing 20% VAT from €120 gives €100 (divide by 1.2), but deducting 20% income tax from 120 gives 96. Choose the type of rate that matches your case.
How to use the Gross to Net Calculator
- Gross amount
- Tax rate type
- Tax rate
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the gross amount, choose the type of rate, and enter the rate.
Inputs explained
| Field | What to enter |
|---|---|
| Gross amount | Amount in your currency |
| Tax rate type | Choose one: Tax is added on top of the net amount (VAT, sales tax), Tax is a share of the gross amount (income tax) |
| Tax rate | In % |
What each result means
- Tax amount = [Gross amount] – [Net amount]
- Tax as a share of gross = [Tax amount]÷[Gross amount]×100
Example values
How the main result changes when Gross amount changes and everything else stays at the example values above:
| Gross amount | Net amount |
|---|---|
| 600 | 500 |
| 900 | 750 |
| 1,200 | 1,000 |
| 1,500 | 1,250 |
| 1,800 | 1,500 |
| 2,400 | 2,000 |
Formula
Rate of the gross (e.g. income tax): net = gross × (1 − rate)
Rate added to net (e.g. VAT): net = gross ÷ (1 + rate)
Tax = gross − net
Worked example
Inputs: Gross amount: $1,200; Tax rate type: Tax is added on top of the net amount (VAT, sales tax); Tax rate: 20 %.
Results: Net amount = $1,000.00; Tax amount = $200.00; Tax as a share of gross = 16.67 %.
Frequently asked questions
How do I calculate net from gross?
For VAT, divide by (1 + rate); for income tax, multiply by (1 − rate).
Why are the results different?
VAT is a percentage of the net price; income tax is a percentage of gross pay.
What is net pay?
Pay after taxes and deductions.