Total Profit
$60,363.76
Avg Monthly
$5,030.31
Break Even
Month 1
Cumulative Profit Trend
| Month | Revenue | Costs | Profit | Cumulative |
|---|---|---|---|---|
| 1 | $15,000.00 | $10,000.00 | $5,000.00 | $5,000.00 |
| 2 | $15,007.50 | $10,002.00 | $5,005.50 | $10,005.50 |
| 3 | $15,015.00 | $10,004.00 | $5,011.00 | $15,016.50 |
| 4 | $15,022.51 | $10,006.00 | $5,016.51 | $20,033.01 |
| 5 | $15,030.02 | $10,008.00 | $5,022.02 | $25,055.03 |
| 6 | $15,037.54 | $10,010.00 | $5,027.54 | $30,082.57 |
| 7 | $15,045.06 | $10,012.01 | $5,033.05 | $35,115.62 |
| 8 | $15,052.58 | $10,014.01 | $5,038.57 | $40,154.19 |
| 9 | $15,060.11 | $10,016.01 | $5,044.10 | $45,198.29 |
| 10 | $15,067.64 | $10,018.01 | $5,049.63 | $50,247.92 |
| 11 | $15,075.17 | $10,020.02 | $5,055.15 | $55,303.07 |
| 12 | $15,082.71 | $10,022.02 | $5,060.69 | $60,363.76 |
Note: This is a simplified linear projection. Actual results will vary based on market conditions, seasonality, and business decisions. Consult a business advisor for comprehensive financial planning.
How to forecast your business profits and plan for corporate tax obligations
Why is profit projection important for Singapore businesses?
A profit projection helps you plan for corporate tax, manage cash flow, and make informed decisions about hiring, inventory, and investment. In Singapore, companies must file Estimated Chargeable Income (ECI) within three months of their financial year end. A good profit projection makes ECI filing accurate and avoids surprises when the final tax bill arrives.
What is the corporate tax rate in Singapore?
The headline corporate tax rate is 17%. However, new companies get a partial exemption: 75% on the first S$10,000 of chargeable income and 50% on the next S$190,000 — for the first three Years of Assessment. This means a new company earning S$200,000 profit pays an effective rate of about 8.2%, not the full 17%.
How do you project revenue for a Singapore business?
Start with your current monthly revenue and apply realistic growth assumptions. Factor in seasonal trends — many Singapore businesses see higher sales around Chinese New Year, National Day, and the year-end holiday season. If you have contracts, include confirmed revenue. For new business, use conservative estimates and build in a buffer of 10% to 20% below your best case.
What expenses should you include in your profit projection?
Include all business costs: rent (office space in Singapore averages S$4 to S$8 per sq ft per month), employee salaries plus CPF employer contributions (17%), utilities, marketing, insurance, software, professional fees (accounting, legal), and loan repayments. Do not forget one-off costs like equipment purchases and annual licences. Break costs into fixed and variable for better accuracy.
How does GST affect your profit projection?
If you are GST-registered, your revenue should be projected excluding GST — the 9% collected from customers is not your income. Similarly, GST on purchases can be claimed back as input tax credits. If you are not GST-registered, include the full cost of purchases (with GST) as your expense, because you cannot claim the GST back.
What is the break-even point and how do you calculate it?
Break-even is where your revenue equals your total costs — you make zero profit. Calculate it by dividing your fixed costs by your gross profit margin. If your fixed costs are S$10,000 per month and your gross margin is 40%, you need S$25,000 monthly revenue to break even. Anything above that is profit. Knowing this number helps you set sales targets.
How far ahead should you project profits?
Most Singapore businesses create 12-month projections, updated quarterly. Start-ups seeking funding often need 3-year projections. The first 6 months should be detailed month by month; beyond that, quarterly figures are fine. Review your projection against actual results each month and adjust. An accurate projection is a living document, not a one-off exercise.
IRAS-Aligned: Based on 2025 IRAS rates and thresholds. For personal advice, speak to a qualified tax professional.
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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