Tax calculator

Currency

Revenue₦Deductible expenses₦Income tax rate%Income tax already paid₦

Sales tax/VAT rate%Sales tax/VAT collected₦Sales tax/VAT paid₦

Estimated tax due

₦225,000

Monthly estimate

Reserve amount

₦225,000

Income tax due

₦150,000

Sales tax/VAT due

₦75,000

Effective income tax rate

20%

Tax split

Income tax₦150,000Sales/VAT₦75,000

Profit after tax

Estimate only. Confirm rates, deductions, filings, and local rules with a qualified tax professional.

Terms used in this calculator

Currency: The money symbol used for revenue, expenses, tax, and profit.
Period: The filing window for the estimate: month, quarter, or year.
Revenue: The total business income for the selected period before expenses.
Deductible expenses: Business costs that reduce taxable profit for this estimate.
Income tax rate: The percentage applied to taxable profit to estimate income tax.
Income tax already paid: Any income tax payment already made for the selected period.
Sales tax/VAT collected: Tax collected from customers that may need to be remitted.
Sales tax/VAT paid: Tax already paid on eligible business purchases or remittances.

Taxable profit

Taxable profit=Revenue - Deductible expenses

Taxable profit=₦1,200,000 - ₦450,000 = ₦750,000

Income tax before payments

Income tax before payments=Taxable profit × Income tax rate

Income tax before payments=₦750,000 × 20% = ₦150,000

Income tax due

Income tax due=Income tax before payments - Income tax already paid

Income tax due=₦150,000 - ₦0 = ₦150,000

Sales tax/VAT due

Sales tax/VAT due=Sales tax/VAT collected - Sales tax/VAT paid

Sales tax/VAT due=₦90,000 - ₦15,000 = ₦75,000

Total tax due

Total tax due=Income tax due + Sales tax/VAT due

Total tax due=₦150,000 + ₦75,000 = ₦225,000

Effective income tax rate

Effective income tax rate=Income tax dueTaxable profit× 100

Effective income tax rate=₦150,000₦750,000× 100 = 20%

Profit after tax

Profit after tax=Taxable profit - Income tax due

Profit after tax=₦750,000 - ₦150,000 = ₦600,000

A business tax calculator helps owners estimate what should be set aside from revenue before the money is spent. It is most useful for monthly, quarterly, and yearly cash-flow planning.

This calculator separates income tax from sales tax or VAT. Income tax is estimated from taxable profit after deductible expenses, while sales tax or VAT is estimated from tax collected minus tax already paid on business purchases.

Tax rules differ by country, state, industry, business structure, and filing period. Use the result as a planning estimate, then confirm the final amount before filing or paying.