Revenue grows at this rate; expenses at half
Total Profit
€92,057.11
Net After Tax
€59,834.56
Avg Monthly
€7,671.43
Est. Tax
€32,222.55
| Month | Revenue | Expenses | Profit | Cumulative |
|---|---|---|---|---|
| Month 1 | €12,000.00 | €6,000.00 | €6,000.00 | €6,000.00 |
| Month 2 | €12,360.00 | €6,090.00 | €6,270.00 | €12,270.00 |
| Month 3 | €12,730.80 | €6,181.35 | €6,549.45 | €18,819.45 |
| Month 4 | €13,112.72 | €6,274.07 | €6,838.65 | €25,658.10 |
| Month 5 | €13,506.11 | €6,368.18 | €7,137.93 | €32,796.03 |
| Month 6 | €13,911.29 | €6,463.70 | €7,447.59 | €40,243.62 |
| Month 7 | €14,328.63 | €6,560.66 | €7,767.97 | €48,011.59 |
| Month 8 | €14,758.49 | €6,659.07 | €8,099.42 | €56,111.01 |
| Month 9 | €15,201.24 | €6,758.96 | €8,442.28 | €64,553.29 |
| Month 10 | €15,657.28 | €6,860.34 | €8,796.94 | €73,350.23 |
| Month 11 | €16,127.00 | €6,963.24 | €9,163.76 | €82,513.99 |
| Month 12 | €16,610.81 | €7,067.69 | €9,543.12 | €92,057.11 |
Growth model
Revenue grows at the specified monthly rate using compound growth. Expenses grow at half the revenue growth rate, reflecting the typical pattern where costs increase more slowly than revenue as a business scales.
Tax estimation
The estimated tax is calculated using Irish marginal tax rates on the annualised profit. This includes Income Tax (20%/40%), USC, and PRSI Class S at 4%. Tax credits (personal + earned income) are applied.
Revenue-Aligned: Tax estimates use 2025-26 Irish tax brackets and PRSI Class S rate. Projections are estimates only.
How to forecast your business profits and plan for tax
What is a profit projection?
A profit projection is an estimate of how much money your business will make over a set period, usually 12 months. You list your expected income, subtract your costs, and the result is your projected profit. This helps you plan for tax payments, decide whether to invest in equipment, and set targets for growth.
How do I estimate my business income?
Start with what you earned last year and adjust for changes. If you had €80,000 in revenue last year and expect 10% growth, project €88,000. If you are new, estimate based on your pricing and how many clients or sales you realistically expect. Be conservative — it is better to be pleasantly surprised than caught short on tax.
What costs should I include in my projection?
Include all business expenses: rent (€500 to €2,000 per month), utilities, insurance, materials, staff wages, accountant fees (€500 to €1,500), phone and internet, travel, marketing, and software subscriptions. Do not forget irregular costs like equipment replacement, training, or professional membership fees. Split costs into fixed (same every month) and variable (change with sales).
How much tax should I factor into my projection?
For a sole trader, budget 30% to 40% of net profit for tax (Income Tax, PRSI, and USC combined). If your projected profit is €60,000, set aside about €18,000 to €24,000 for tax. For a limited company, corporation tax is 12.5% on trading profits, but extracting money via salary adds further tax. Build tax into your monthly cash flow plan.
Why is cash flow different from profit?
Profit is what you earn minus what you spend. Cash flow is when money actually enters and leaves your bank account. You might invoice €10,000 in January but not get paid until March. Meanwhile, you still need to pay rent, wages, and suppliers. Many profitable businesses fail because they run out of cash. Always project cash flow alongside profit.
How often should I update my projection?
Review your projection at least every quarter. Compare your actual figures to your estimates and adjust. If revenue is 20% below projection, you need to cut costs or find new clients. If you are ahead, consider investing in growth. Monthly reviews are even better, especially in your first year of business when everything is uncertain.
What is break-even and why does it matter?
Break-even is the point where your revenue exactly covers all your costs. If your fixed costs are €3,000 per month and your profit margin is 40%, you need €7,500 per month in sales to break even. Knowing this number helps you understand the minimum you need to earn to stay in business. Anything above break-even is your actual profit.
Revenue-Aligned: Based on 2025 Revenue rates and thresholds. For personal advice, speak to a qualified tax adviser.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 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 or tax adviser before making financial decisions. Read our terms
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