TikTok Shop UK Fee Calculator (with VAT)

How to Use the TikTok Shop UK Fee Calculator

The TikTok Shop UK Fee Calculator answers one specific question: how much remains from a sale after subtracting the VAT included in the price and the platform commission. All calculations run in your browser, so you enter the data and see the result right away.

You have three fields to work with:

• Gross price for customer (GBP) — the amount the buyer pays; default is 20.
• TikTok Shop commission % — the commission rate you want to use in the calculation; default is 9.
• VAT % — the VAT rate you want to include; default is 20.

After you enter the values, you will see three results: "VAT included in price," "Commission (on gross price)," and "Remaining after VAT and commission." Amounts appear in pounds (£), and the tool header tells you which currency is being used.

For the default values, it looks like this: gross price 20 £, commission 9%, VAT 20%. VAT included in the price is 3.33 £, commission on the gross price is 1.80 £, and after VAT and commission, 14.87 £ remains.

Changing any field instantly changes the results, so you can test several scenarios one after another — for example, a cheaper and a more expensive product, or a different commission rate.

How to Choose the Commission and VAT

The values 9% and 20% are just a starting point stored in the fields. Nothing stops you from changing them — the tool calculates based on what you enter.

Commission. The commission rate can vary depending on what and how you sell, and the platform's terms may change. Before you treat the result as binding, check the current TikTok Shop pricing for the United Kingdom and enter the rate that applies to your sales. If you already have settlement statements, it is best to rely on the rate you actually see in your documents.

VAT. The VAT rate depends on what you sell and how you file in the United Kingdom. Enter the value you use in your own accounting; if you are not sure, ask your accountant. The default 20 is only the field value, not a fixed rule.

By entering your own rates, you can also calculate in any currency — just make sure all amounts are in the same unit. The header shows £, but the calculation mechanism is the same for any currency.

Good practice: run several variations — a low and a high commission rate, and different VAT rates — and see how much the remaining amount changes. That usually says more about profitability than a single result.

How to Calculate VAT Included in the Gross Price

When a customer pays 20 £, that does not mean the entire amount is your revenue — part of it is VAT, which is already "inside" the price. That is why you do not calculate it as price × rate, but differently.

The formula looks like this: VAT included in price = gross price × VAT% ÷ (100 + VAT%).

Step by step for a price of 20 £ and a rate of 20%:

1. You add 100 and the VAT rate: 100 + 20 = 120.
2. You multiply the gross price by the VAT rate: 20 × 20 = 400.
3. You divide the result by 120: 400 ÷ 120 = 3.33 £.

So in a 20 £ price, 3.33 £ of VAT is hidden, and the price without VAT is 16.67 £.

This distinction matters because the commission in this calculator is calculated on the gross price, not on the amount after subtracting VAT. Two different bases in one calculation — and that is where the final amount you see in the third result comes from.

How to Interpret the Amount That Remains

The "Remaining after VAT and commission" result is a simple calculation: gross price − VAT included in price − commission on gross price. With the default values, that gives 20 − 3.33 − 1.80 = 14.87 £.

This is not your profit. This amount only tells you what remains after two deductions: VAT and commission. It does not include the cost of buying or producing the product, packaging, shipping, returns, or other fees that may appear in your settlement.

A practical approach: treat 14.87 £ as a budget from which you still have to cover everything else. If the product and delivery cost is, for example, 10 £, the margin is much smaller than the difference between 20 £ and 14.87 £ alone would suggest.

That is why it is best to read this result as a starting point for further calculation, not as the final answer to the question "is this profitable?"

Limitations and What the Tool Does Not Calculate

The calculator is intentionally narrow: it calculates the VAT included in the price, the commission on the gross price, and the amount that remains after those two deductions. Everything else is left up to you.

The tool does not collect or account for:

• product category,
• product cost or the cost of producing it,
• shipping and packaging costs,
• returns and their impact on your settlement,
• platform fees other than the commission entered in the field,
• taxes other than the VAT included in the price,
• current exchange rates,
• your individual settlement terms and any allowances.

In addition, the rates you enter are indicative and editable — the tool does not know the current TikTok Shop pricing or your tax situation. Always check current rates in the platform's official materials, and consult your accountant on tax matters.

The result is therefore indicative and works best as a quick test, step by step: you change the rate, see what remains, and only then add your own costs. If you are looking for a full profit calculation, you also need a spreadsheet with product, logistics, and returns costs.

Frequently Asked Questions

TikTok Shop UK rates are approximate and depend on the category and current pricing — before you decide, check the platform's official fees.