Enter a payment you received and your own estimates. The calculator splits it into VAT to hold back, money to save for income tax and social contributions, and what is left to spend. It is a planning aid using flat percentages, not a tax calculation.
VAT to hold for VAT return
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Income tax set-aside
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Social contributions + buffer
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Left for costs & you
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Nothing you type leaves your device. Planning aid only, not tax or legal advice. Last checked .
How the calculation works
VAT: if the payment includes VAT, VAT = payment − payment ÷ (1 + rate). That money is not yours; hold it for the VAT return. (You may be able to offset deductible input VAT; this tool ignores that to stay cautious.)
Profit share: net income × (1 − costs %). This approximates the part of the payment that will be taxed.
Left over: what remains covers your business costs and your own pay.
Making it a habit
The simplest system: open a separate savings account, and every time a client pays, move the "total to set aside" figure the same day. Review the percentage once a year when your tax assessment arrives. Our guide How much tax should a freelancer set aside? explains how to find a sensible percentage for your situation.
Rates for income tax and social security differ by country, income level and status. The defaults here are arbitrary example values, not recommendations. Check locally.
FAQ
What percentage should I set aside?+
There is no single EU answer: income tax is national, usually progressive, and social contributions for the self-employed vary a lot between countries. Use your tax authority's calculator or last year's assessment to estimate your effective rate (total tax ÷ profit), then enter that here. If you have no idea yet, start conservatively high and adjust after your first assessment or a chat with an accountant.
Why is VAT separate?+
If you are VAT registered, the VAT your clients pay you is not income: you collect it on behalf of the tax authority and pay it over with your VAT return (minus deductible input VAT). Keeping it separate avoids the classic mistake of spending it.
Should I set aside a percentage of revenue or profit?+
Income tax and most social contributions are calculated on profit (income minus deductible expenses), so this calculator applies your rates to profit. If you do not track expenses yet, set expenses to 0%, which gives a more cautious (higher) set-aside.
What about advance / provisional tax payments?+
Many countries require self-employed people to pay income tax in advance instalments during the year, based on estimates or the previous year. The money you set aside is what funds those payments. Instalment dates and methods are national: check locally.
Is this an exact tax calculation?+
No. It applies flat percentages you choose. It ignores allowances, brackets, deductions, credits and caps. It is a savings planning aid only.
Last checked: . General information, not tax or legal advice. Rules and national details change: check locally with your tax authority or an accountant.
