Business Viability Calculator
Calculate your real net profit by subtracting costs, taxes, and social security contributions from your monthly income.
Results
Monthly net profit
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Annual net profit
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Total monthly costs
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Monthly ROI (%)
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Break-even point (months)
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Net profit = Income - Operating costs - (Income × SS rate) - ((Profit before tax) × Tax rate)
Income, costs, and profit evolution
Monthly breakdown
| month | Monthly income | Total monthly costs | Monthly net profit |
|---|
When should you use this calculator?
This calculator helps you understand the real viability of your self-employment or freelance business.
How it is calculated
The key is differentiating between gross income (what you bill) and net profit (what you actually earn after costs).
Practical example
Example: If you invoice 3000 EUR/month, have fixed costs of 500 EUR, pay 400 EUR social security and 250 EUR taxes, your real profit is 1850 EUR/month.
Common mistakes
Many freelancers confuse income with profit. Your net profit must be enough to live on.
Legal and tax context
Break-even is when income equals operating costs plus social security plus taxes. If you don't reach it, the business isn't viable.
Remember this calculator is an estimate. Consult a tax advisor for accurate figures in your country.
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Frequently asked questions
What costs should I include?
All recurring operating costs: office rent, services (internet, phone), utilities (electricity, water, gas), insurance, software, materials, and any other necessary business expense.
How do I calculate monthly income if it's irregular?
Use an average from the last 12 months. If your business is new, estimate conservatively how many clients you'll have and what you'll charge.
Are social security and tax rates the same in all countries?
No. In Spain, self-employed pay approximately 13% social security and income tax 20-45% depending on profit. Other countries vary. Adjust according to your legislation.
What is break-even?
It's the income level where you earn exactly what you spend on costs plus social security plus taxes. Below that you lose money, above that you profit.
What ROI should I expect?
It depends on the sector. Consulting might have 50-70% ROI. Retail 10-20%. If your ROI is negative or very low, the business isn't viable.
Does this calculator include future income growth?
No. It assumes constant income. If you plan to grow, create a separate scenario with higher income to see when the business becomes truly profitable.