Add VAT to a price
PremiumThe prices in column B are before VAT. In C2, work out the printer's price with 25% VAT: multiply by 1 plus the rate in F1, B2*(1+$F$1).
| A | B | C | D | E | F | G | |
|---|---|---|---|---|---|---|---|
| 1 | Item | Price excl. VAT | Price incl. VAT | VAT rate | 0.25 | ||
| 2 | Printer | 800 | |||||
| 3 | Monitor | 1800 | |||||
| 4 | Keyboard | 300 | |||||
| 5 | |||||||
| 6 | |||||||
| 7 | |||||||
| 8 |
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Why this works
25% VAT on 800 is 200, so the printer costs 1,000 with VAT. Multiplying by (1 + 0.25) = 1.25 does both in one step: 1 keeps the price and 0.25 adds the VAT. The $ signs keep F1 in place when you fill down.
Common mistake: Adding the rate to the price, B2+F1. That adds 0.25, not 25% of the price.
The answer
- C2
=B2*(1+$F$1)
Multiply by 1 plus the VAT rate, for example =B2*(1+$F$1) with the rate in F1, or =B2*(1+25%). The same works for sales tax at any rate.
Multiply the price before VAT by the rate, =B2*$F$1, which is 200 for a price of 800 at 25%.