Business Tax Calculator

Estimate corporate tax on business profit, with deductions and loss carry-forward.

Please note: A general estimate, not tax advice. Rates, bands, allowances and rules differ by country and change frequently. Enter the figures that apply to you and confirm with a qualified tax professional or your tax authority.

What the Business Tax Calculator does

Corporate tax applies to profit, not revenue. Deductible expenses, depreciation and losses carried forward from earlier years all reduce the taxable base before the rate is applied, and credits then come off the tax itself.

Formula

Gross profit = Revenue − Deductible expenses
Taxable profit = max(0, Gross profit − Depreciation − Losses carried forward)
Tax = max(0, Taxable profit × Rate − Credits)

Inputs explained

Input	Unit	Required	Notes
Revenue	selected currency	Yes	Accepts more than 0.
Deductible expenses	selected currency	Yes	Accepts 0 or more.
Depreciation and capital allowances	selected currency	Optional	Accepts 0 or more.
Corporate tax rate	%	Yes	—
Losses carried forward	selected currency	Optional	Accepts 0 or more.
Tax credits	selected currency	Optional	R&D or similar credits. Accepts 0 or more.
Currency	one of 10 options	Optional	—

How to use it

Choose Currency.
Enter Revenue, Deductible expenses and Corporate tax rate.
Optionally add Depreciation and capital allowances, Losses carried forward and Tax credits.
Select Calculate.

Worked example

$1,200,000 revenue, $780,000 expenses, $60,000 depreciation, 21% rate, $40,000 losses carried forward.

Revenue: 1200000
Expenses: 780000
Depreciation: 60000
Rate: 21
Losses: 40000

Profit before tax $360,000, taxable $320,000, tax $67,200 — net profit $292,800.

Frequently asked questions

Why is taxable profit different from accounting profit?

Tax rules treat depreciation, provisions and certain expenses differently from accounting standards. The gap between the two is normal and often substantial.

How do loss carry-forwards work?

Losses from earlier years offset current profit, reducing tax. Most jurisdictions limit how long they last or what share of profit they can offset.

Method and sources

Method. Deductible expenses are subtracted from revenue to give taxable profit, the rate entered is applied, and any credits reduce the resulting tax.

Assumptions

The expenses entered are deductible in full in this period, which excludes anything capitalised and depreciated over time.
A single flat rate describes the charge.

Limitations

Capital allowances, depreciation schedules, loss carry-forwards and small-profits rates all change the answer and none is modelled.
Entity type governs how business profit is taxed — through the company, or on the owner's personal return — and that choice matters more than the rate.
No rate table ships with this calculator: you supply the rates, so the result follows whichever jurisdiction and year you enter. That means it can never go silently out of date — but it also cannot warn you if the figures you entered are.

Sources

Your own tax authority's published guidance for the relevant year — Varies by jurisdiction. The corporate or business rate, what is deductible when, and how losses carry.