Net to Gross Calculator
Convert between net and gross amounts with different tax calculation methods
Calculate Net to Gross Conversion
Base amount before or after tax calculation
Tax rate as a percentage (0-100%)
Calculation Results
Calculation Breakdown:
Method: Tax added to net amount (Sales Tax/VAT model)
Tax Amount: $0.00 × 0% = $0.00
Gross Amount: $0.00 + $0.00 = $0.00
Effective Rate: 0% (same as input rate)
Sales Tax Example
Product Price: $40 (net)
Sales Tax: 25%
Tax Amount: $40 × 25% = $10
Total Price: $40 + $10 = $50
Income Tax Example
Net Income: $40 (after tax)
Income Tax: 20%
Gross Income: $40 ÷ (1-20%) = $50
Tax Paid: $50 - $40 = $10
Common Tax Rates
Key Differences
Tax Added (Sales/VAT)
Tax is calculated as a percentage of the base price and added on top. The customer pays the net price plus tax.
Tax Deducted (Income)
Tax is calculated as a percentage of the gross amount and deducted. The net amount is what remains after tax.
Important: Same net and gross amounts can have different tax percentages depending on the calculation method!
Understanding Net vs. Gross Calculations
What is Net vs. Gross?
The distinction between net and gross amounts depends on whether tax is added to or deducted from the base amount. This fundamental difference affects how percentages are calculated and applied.
Sales Tax/VAT Model
- •Net = Base price before tax
- •Tax is added to the net amount
- •Gross = Net + Tax
- •Customer pays the gross amount
Income Tax Model
- •Gross = Total earnings before tax
- •Tax is deducted from gross
- •Net = Gross - Tax
- •Employee receives the net amount
Formula Comparison
Tax Added Method
Tax Amount = Net × (Tax Rate ÷ 100)
Gross Amount = Net + Tax Amount
Effective Rate = Tax Rate
Tax Deducted Method
Gross Amount = Net ÷ (1 - Tax Rate ÷ 100)
Tax Amount = Gross - Net
Effective Rate = (Tax ÷ Gross) × 100
Real-World Applications
- Sales/VAT: Retail prices, product costs
- Income Tax: Salaries, wages, bonuses
- Business: Invoice amounts, profit calculations
- Investment: Returns, capital gains