Business · Profit · Germany

Will my business make money ?

Model any small business in Germany: revenue, costs, and what's left after tax. Works for a freelancer with a laptop or a venue with €100,000 in setup costs. Open the loan section only if you need to borrow.

These numbers would work. Solid operating margin and meaningful profit after tax.

Profit€7,095per year after business tax. Yours to take, reinvest, or save.
Monthly
Revenue€6,600
Costs€4,955
Profit€591
Yearly
Revenue€79,200
Costs€59,460
Profit (after tax)€7,095

These are realistic first-year defaults for a small German service business - tight but functional. Adjust price, customer count and costs to model your own version.

Legal form

The simplest form: one person, one business, registered with €50 at the local Gewerbeamt. No minimum capital, no notary, no commercial register entry. You're personally liable for everything - business debts can reach your personal assets. Profit flows to your personal income tax return, with a €24,500 annual Gewerbesteuer Freibetrag (allowance) that means small businesses often pay no trade tax at all. Right for solo founders testing an idea, freelancers running a Gewerbe (not a liberal profession), and small operators who value low overhead over liability protection. Most German small businesses are this form.

Where you register
Short explanation of the key terms
How does revenue come in?
customers
Monthly profit (pre-tax)€591
Annual profit (pre-tax)€7,095
Annual Gewerbesteuer (490% Hebesatz)€0
Annual profit (after tax)€7,095
Profit margin
11%
Pre-tax profit as a share of net revenue. Healthy small businesses run 10–25%; tight businesses run under 5%.
Break-even revenue
€6,000
Monthly gross revenue you need to clear to cover all costs. Anything above this is profit; anything below it bleeds cash.
Annual EBITDA
€8,295
Earnings before interest, taxes, depreciation and amortisation. The operating cash the business generates before financing structure and capital decay. Comparable across businesses regardless of how they're funded.

Where your money goes

Each bar shows one monthly cost as a share of your net revenue. Lines that grow large eat your margin.

100% revenue
Staff (gross salaries)€3,050 · 55%
Rent€800 · 14%
Marketing€300 · 5%
Steuerberater€250 · 5%
Insurance€150 · 3%
Software, payments, tools€150 · 3%
Utilities€100 · 2%
Equipment replacement reserve€100 · 2%
Profit (what's left)€591 · 11%
Open if you need to borrow to cover setup costs. Skip if you have the capital.
0 customers/month-€4,900/month-€58,800/year
30 customers/month-€1,905/month-€22,857/year
60 customers/month€1,090/month€13,085/year
90 customers/month€4,086/month€49,028/year
120 customers/month€7,081/month€84,970/year
150 customers/month€10,076/month€120,913/year

Defaults err on the pessimistic side. This is a stress test, not a marketing pitch.

Starting a business in numbers.

2026 · real numbers for founders

The honest question this calculator answers isn't whether your business idea is good. It's a narrower, more useful one: if you spend your hours doing this work, do enough of those hours come back as money for the work to be worth doing. That's not a question about ambition or markets or vision. It's a question about whether the labour pays for itself once Germany has taken its share.

What the model does

You enter what comes in: by customer, by month, or as a list of separate revenue items at different cadences. You enter what goes out: rent, software, accountant, staff, all the small monthly bleeds. The model strips VAT from the revenue, adds 22% Lohnnebenkosten to any staff costs, subtracts Gewerbesteuer above the €24,500 annual Freibetrag, and tells you what's left. The verdict box reads as a parallel income statement: what each month makes and what the year actually keeps after tax.

If you need a loan to get started, open the loan section and the calculator adds the monthly debt service to your fixed costs. The default rate uses KfW StartGeld's published maximum (about 5%, ten years, capped at €200,000), which is the programme most small new businesses qualify for. Real offers often come in lower.

Things the calculator surfaces that owners discover the hard way

The cost of a hire is not the gross salary

Lohnnebenkosten (the employer's share of pension, health, care and unemployment insurance) adds about 22% to whatever gross you put on the contract. A €3,000 gross hire actually costs the business €3,660 a month before they've earned their first euro for you. New owners almost always plan around the gross figure and then discover the gap when the first payroll runs.

Where you put your desk is a tax decision

Gewerbesteuer is set by the municipality, not the federation. Munich's Hebesatz is 490%, one of the highest in Germany; Berlin's is 410%; rural Bavaria can be 240%. On the same €60,000 of taxable profit, the Munich business pays roughly €6,100 in trade tax and the Oberpfalz business pays about €3,000. The Bundesland selector picks up the regional default. For most small operations the location is set by life, not by tax. But the gap is real and worth knowing.

A profitable business and a healthy business are different things

A business making €500 a month on €25,000 of revenue is profitable. It is also two percent margin away from disaster. The profit margin metric (what's left after costs as a share of net revenue) tells you how much room the business has to absorb a bad month. Healthy small businesses tend to run between 10 and 25 percent; tight ones run under 5. The verdict box gives you the profit number; the margin tells you whether that number is going to survive a slow week.

If you don't pay yourself, the customer is buying your time at a discount

A solo founder who runs the calculator with zero in the staff line will see a beautiful profit margin. They are also subsidising their customers with their own unpaid labour. The "max gross at break-even" hint next to the staff field is the honest read: at your current numbers, this is what the business could afford to pay you and still break even. If that figure is less than what you'd accept to do the same work for someone else, the business isn't really profitable yet. It's living on your willingness to be underpaid.

What the calculator doesn't model

It doesn't model the year, only the month. Seasonality, a slow ramp from opening day, the client who pays sixty days late, the supplier who raises prices, the quarter where you take on no new work because you're delivering a big project, the week you're too ill to invoice. None of that is here. The model assumes a typical month and scales it to twelve. Real years are messier.

It also doesn't tell you whether the demand assumptions are realistic. The calculator can say that 600 customers a month at €15 each pays for itself. It cannot say whether 600 customers a month is achievable in your neighbourhood. That part you work out with foot traffic, competitor counts, and conversations with people already running similar businesses.

Personal income tax happens after the business pays you out, and isn't included here. For that the salary you draw goes through the net salary calculator.

Using it

Run it once with your honest numbers, then change one thing at a time and watch what moves. A 10% price rise, a quieter month, an extra hire, a different city. The sensitivity table at the bottom shows a few of those moves laid out at once. Treat the numbers as a stress test, not a forecast. And especially not a decision. The decision is yours; the calculator just makes the consequences legible before you commit to them.

Five charts. Every Sunday.

The week's most telling numbers from Germany, drawn well, in your inbox. No filler. No ads.