Skip to main content
Calculators/

Profit Projection Calculator

2025
Projection Inputs
$

Starting monthly revenue

$

Expected annual growth (revenue and expenses)

Annual Projection
Projected Revenue$184,182.83
Projected Expenses-$61,394.28
Projected Profit$122,788.55
Federal Tax-$18,280.36
Provincial Tax (Ontario)-$8,946.48
CPP/QPP-$8,460.90
Net After Tax$87,100.81

Profit Margin

66.7%

Quarterly Instalment

$8,921.94

Month-by-Month
MonthRevenueExpensesProfitCum. Profit
Jan$15,000.00$5,000.00$10,000.00$10,000.00
Feb$15,062.50$5,020.83$10,041.67$20,041.67
Mar$15,125.26$5,041.75$10,083.51$30,125.17
Apr$15,188.28$5,062.76$10,125.52$40,250.70
May$15,251.57$5,083.86$10,167.71$50,418.41
Jun$15,315.12$5,105.04$10,210.08$60,628.48
Jul$15,378.93$5,126.31$10,252.62$70,881.10
Aug$15,443.01$5,147.67$10,295.34$81,176.44
Sep$15,507.35$5,169.12$10,338.24$91,514.67
Oct$15,571.97$5,190.66$10,381.31$101,895.99
Nov$15,636.85$5,212.28$10,424.57$112,320.55
Dec$15,702.00$5,234.00$10,468.00$122,788.55
Total$184,182.83$61,394.28$122,788.55$122,788.55
Understanding Profit Projection for Canadian Businesses

Planning your business finances and tax obligations

Projecting your annual profit helps you estimate quarterly instalment payments, plan for CPP contributions, determine if you need GST/HST registration, calculate RRSP contribution room, and set aside funds for taxes. Without a projection, you risk underpaying instalments (leading to interest charges) or having a large unexpected tax bill.
If your net tax owing exceeds $3,000, CRA requires quarterly instalment payments due March 15, June 15, September 15, and December 15. You can calculate instalments using three methods: the current-year method (based on projected income), the prior-year method, or the CRA no-calculation method (using amounts from your instalment reminder).
Most sole proprietors and self-employed individuals must use a December 31 fiscal year-end. This means your business income for the calendar year is reported on your personal tax return. Partnerships may be able to elect an alternative fiscal period, but must make an additional income calculation for the "stub period."
Set aside 25-35% of gross revenue for taxes in a separate savings account. Make quarterly instalment payments on time to avoid interest. Track expenses monthly to identify trends. Maintain 3-6 months of operating expenses as an emergency fund. Use accounting software to automate tracking and invoicing.
Higher growth means higher income, which can push you into higher tax brackets, increase CPP contributions, and require larger quarterly instalments. It may also push you past the $30,000 GST/HST threshold. Plan for these increases by adjusting your tax set-aside percentage as your income grows.
Consider incorporating when your net business income consistently exceeds what you need for personal spending (often around $100,000-$150,000+). The small business tax rate (combined federal + provincial) can be significantly lower than personal rates, allowing tax deferral. However, incorporation adds complexity and costs. Consult an accountant.

CRA-Aligned: Tax estimates use 2025 CRA rates. Projections are illustrative and assume linear growth. Actual results may vary. Consult a tax professional for personalised advice.

More Information

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

Related Calculators

Business Deductions Calculator

Which expenses are deductible — vehicle, home office, supplies, travel.

Freelancer Rate Calculator

What to charge per hour to cover taxes, CPP, and business expenses.

GST/HST Filing Calculator

Estimate your GST/HST remittance — GST collected minus Input Tax Credits.

Invoice Calculator

Build invoices with correct GST/HST — inclusive and exclusive amounts.

Self-Employed Tax Calculator

Federal + provincial tax plus both CPP portions on self-employment income.

Sole Proprietor Tax Calculator

Complete tax breakdown for sole proprietor T2125 business income.