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Tax Survival Calculator

Estimate the reserve you should set aside before spending operating cash.

Taxes·Free to use, no signup required

Inputs

Operating profit

$26,000.00

Recommended reserve

$6,500.00

Post-reserve cash

$19,500.00

Estimated VAT exposure

$0.00

Income / corp tax

$6,500.00

Monthly reserve target

$6,500.00

Risk flag

low
  • · You are short by 6500 in your tax reserve.

Assumptions

Generic global defaults. Scenario adjustment: standard.

This is an operational estimate, not tax advice. Confirm with a qualified accountant.

What this tool does

The Tax Survival Calculator estimates how much of your revenue you should hold back for tax — separating VAT or sales tax from income or corporate tax — so the money you spend is actually yours.

It is country-aware: defaults change based on jurisdiction, and you can adjust the scenario between optimistic, standard, and conservative.

Who it is for

Sole traders and freelancers who file income tax annually but spend monthly.

Owners of small companies who pay corporate tax and want to reserve cash continuously.

Anyone who has ever been surprised by a tax bill they had already spent.

How it works

  1. Pick your country and business type. Defaults adjust to your jurisdiction's typical rates.
  2. Enter gross revenue, deductible costs, and any owner drawings for the period.
  3. Choose a scenario — conservative adds a safety buffer, optimistic reduces the reserve estimate.
  4. Review the recommended reserve, post-reserve cash, and the risk flag.

What your results mean

Recommended reserve is the amount you should move to a separate account before spending operating cash.

Post-reserve cash is what is genuinely available for the business after tax obligations are set aside. If it is negative, drawings or costs need to drop.

A 'high' risk flag means your effective reserve ratio is large enough that running short is likely without behavior change.

Common mistakes to avoid

  • Treating VAT or sales tax as revenue — it is collected on behalf of the tax authority, not earned.
  • Using last year's effective rate as if it will hold this year, especially after a band change or relocation.
  • Forgetting that owner drawings in many jurisdictions are not deductible from corporate tax.

Frequently asked questions

Is this tax advice?
No. This is an operational planning estimate. Final tax positions depend on local rules, deductions, and reliefs that only a qualified accountant or your tax authority can confirm.
Why does the reserve change when I switch scenarios?
The conservative scenario applies a 15% safety buffer to the income tax estimate. The optimistic scenario reduces it by 10%. Standard uses the country defaults as-is.
Should I include VAT in the gross revenue field?
Either is fine — there is a checkbox for 'Revenue includes VAT'. If checked, the calculator extracts VAT from the headline number rather than adding it on top.
How often should I move money to a tax reserve account?
As often as you can. Moving the monthly reserve target every time you get paid is the most reliable habit. Quarterly batches work but require discipline.

How to use this tool

Enter your real numbers where you have them, and use the defaults as a starting point everywhere else. The tighter your inputs, the more useful the result.

When professional advice helps

Use the result to frame the question, not to settle it. For binding decisions, confirm specifics with a qualified professional in your jurisdiction. See how this tool works for what it does and doesn't model.

Related guides

More on this topic

Estimate, reserve, and avoid being surprised by a tax bill.