How much of your revenue is really yours?
Your account balance is the wrong number: it contains VAT that was never your income, and the share meant as a reserve for income tax. Enter one year’s revenue and expenses – the calculator separates the two. No sign-up, and your inputs are not transmitted.
Result
What is really yours
€49,000.00
- Collected in your accountProfit plus VAT not yet paid to the tax office
- €83,300.00
- VAT owed to the tax office (Finanzamt)Calculated – never your income, only passing through
- − €13,300.00
- Reserve for income taxRule of thumb: 30% of €70,000.00 profit
- − €21,000.00
VAT is calculated. Income tax and social contributions are deliberately just a rule of thumb: a fixed percentage of profit. Your actual income tax and your health and social insurance contributions depend on allowances, other income and your individual situation. This calculator does not replace advice from a tax advisor.
Two amounts that behave completely differently.
VAT is calculated money, not an estimate: what you charge on your invoices, minus the input VAT from your expenses. This amount was never income at any point – it only sits in your account until it goes to the tax office. If you treat it as revenue, you plan with money that was never yours.
The income tax reserve is explicitly a rule of thumb: a fixed percentage of profit. How high your income tax actually turns out depends on allowances, other income and your individual situation. That is why this calculator shows both amounts separately instead of one combined number that looks more precise than it is. The legal basis of the small business rule (Kleinunternehmerregelung) is § 19 UStG; the links go to “Gesetze im Internet” (the German federal law portal).
In Sumaro this calculation is not a once-a-year exercise but a running figure: bank reconciliation, paid invoices and recorded expenses update it every night.
Read up on the small business rule →And what does an hour have to cost for this to work?
Once you know what is left of your revenue, the next question is how much revenue you need in the first place – and what a billable hour has to cost to get there.
Go to the hourly rate calculator →Let the number run along instead of calculating it once a year.
Sumaro connects invoices, receipts and bank – and keeps showing you what is really yours after tax and reserves.