Business Viability Calculator

Calculate the real net profit of your business or self-employed activity, subtracting operating costs, social security contributions, and taxes from your monthly income, to see whether the business is actually viable.

When should you use this calculator?

This calculator helps you understand the real viability of your own business or freelance activity, looking beyond the figure you invoice each month: what matters for knowing whether the business lets you make a living isn't gross income, but what's left after subtracting all costs, social security contributions, and taxes.

How it is calculated

The key is distinguishing between gross income (what you invoice) and net profit (what you actually earn after costs). Many businesses that look profitable based on revenue stop looking that way once rent, utilities, materials, social contributions, and tax burden are properly accounted for, which together can represent a very significant share of income.

Practical example

A numerical example: if you invoice €3,000/month, have €500 in fixed costs (rent, utilities, materials), pay €400 in social contributions and €250 in taxes, your real profit is €1,850/month, not the €3,000 the business invoices. This gap between revenue and real profit is why many businesses that seem to be doing well aren't actually generating enough to live on.

Common mistakes

Your business's break-even point is the income level at which net profit is zero: below that figure you lose money, above it you start generating real profit. Calculating this point is key before leaving a salaried job to fully dedicate yourself to your own business, since it gives you a concrete minimum revenue figure needed for the project to be sustainable.

Legal and tax context

Social contributions and taxation for self-employed people or small businesses vary a lot by country: in some, contributions are a fixed percentage on a chosen base; in others, they depend directly on actual income. Likewise, income or profit tax brackets and rates change according to local rules, so adjust this calculator's percentages to your country's legislation.

This calculator's result is an indicative estimate that assumes constant income and costs month to month, without accounting for business growth, seasonality, or unforeseen events. For an exact tax figure and a complete business plan, consult a tax advisor or accountant specialized in your country.

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Frequently asked questions

What costs should I include in the calculation?

All recurring operating costs: office or premises rent, utilities (internet, phone, electricity, water, gas), insurance, software, materials, and any other expense necessary to run the business.

How do I calculate my monthly income if it's irregular?

Use an average of the last 12 months if you already have activity; if it's a new business, estimate conservatively how many clients you'll have and what price you'll charge, then refine the figure with real data as you get it.

Is the social contribution and tax rate the same in every country?

No. Each country has its own contribution system for self-employed people or small businesses and its own tax brackets; adjust this calculator's percentages to the rules in force in your country of residence.

What is a business's break-even point?

It's the income level at which you earn exactly what you spend on operating costs, contributions, and taxes; below it you lose money, above it you generate real profit.

What monthly ROI should I expect from my business?

It depends a lot on the sector: consulting or a professional service can have a 50-70% ROI, while retail with high inventory costs might be around 10-20%. If your ROI is negative or very low on a sustained basis, it's worth reviewing the business model.

Does this calculator include future income growth?

No. It assumes constant income month to month; if you plan to grow, repeat the calculation with different income scenarios to see at what point the business becomes clearly profitable.

Should I account for a reserve fund or financial cushion?

Yes, although this calculator doesn't include it directly: it's advisable to have several months of personal and business expenses saved before relying exclusively on this activity as your only income.

What's the difference between being self-employed/freelance and having a company?

It mainly changes how you're taxed, your level of legal liability for business debts, and the administrative paperwork; this calculator estimates net profit regardless of legal structure, but the exact taxation depends on which one you choose.