What is gross price?
Gross price is the full price after VAT, tax, fees or other additions have been included. For UK VAT sums, it usually means the VAT-inclusive total.
Gross price is the final total price after additions such as VAT have been included. If a price is described as VAT-inclusive, the gross price is the amount the customer pays.
In everyday maths, gross price is often compared with net price. Net price is the amount before VAT; gross price is the amount after VAT has been added.
Why gross price matters
Gross price matters because it tells you the total amount payable. On receipts, quotes and invoices, confusing net and gross prices can lead to wrong totals, missed VAT amounts or incorrect comparisons between suppliers.
Gross price vs net price
The simplest way to remember the difference is this: net is before VAT, gross is after VAT.
| Term | What it means | Example at 20% VAT |
|---|---|---|
| Net price | Price before VAT is added | £100 |
| VAT amount | The VAT added on top | £20 |
| Gross price | Final VAT-inclusive price | £120 |
If a quote says £100 + VAT, £100 is the net price and £120 is the gross price at 20% VAT.
Gross price formula
To calculate gross price from a net price, multiply the net price by one plus the VAT rate.
Gross price = net price × (1 + VAT rate)
At 20% VAT:
Gross price = net price × 1.20For example, if the net price is £250 and VAT is 20%, the gross price is £250 × 1.20 = £300.
Need the exact VAT breakdown?
Use the VAT calculator to add or remove VAT and see the net, VAT and gross amounts separately.
How to find the net price from a gross price
If you already have the gross price and want to remove VAT, divide by the VAT multiplier. At the UK standard rate of 20%, the multiplier is 1.20.
Net price = gross price ÷ (1 + VAT rate)
VAT amount = gross price − net price
At 20% VAT:
Net price = gross price ÷ 1.20Gross price and UK VAT rates
The standard UK VAT rate is 20%, with reduced and zero rates applying to some goods and services. The correct rate depends on what is being sold, so business users should check the relevant VAT treatment rather than assuming every item uses 20%.
| VAT rate | Gross price multiplier | Example from £100 net |
|---|---|---|
| 20% | × 1.20 | £120 gross |
| 5% | × 1.05 | £105 gross |
| 0% | × 1.00 | £100 gross |
Common uses of gross price
- Checking the final total on a VAT-inclusive invoice.
- Comparing quotes where one price includes VAT and another excludes VAT.
- Working out what a customer pays after VAT is added.
- Checking whether a receipt total already includes VAT.
- Understanding the difference between a business cost before VAT and the final cash amount paid.
Gross price FAQs
Is gross price the final price?
Usually, yes. In VAT calculations, gross price means the VAT-inclusive total paid by the customer.
What is the difference between net and gross price?
Net price is before VAT. Gross price is after VAT has been added.
How do you calculate gross price at 20% VAT?
Multiply the net price by 1.20. For example, £100 × 1.20 = £120 gross.
How do you remove VAT from a gross price?
Divide by the VAT multiplier. At 20% VAT, divide the gross price by 1.20 to find the net price.