How a salary is calculated

Overview of the steps NettoWise uses to calculate your salary.

NettoWise calculates your salary step by step. Each step builds on the previous one, from gross profit to net income.

The table below follows the exact order used in the calculation.

Calculation overview

Component	Example	Explanation
Turnover	EUR 10,000	Gross profit for the period, entered manually or calculated from hours and hourly rate.
Business costs	EUR -1,200	Business expenses that apply to this period reduce profit.
Private vehicle	EUR -90	Mileage allowance for business kilometers with a private vehicle, booked in this period.
Car costs	EUR -300	Costs linked to a company car, such as maintenance or lease.
Depreciations	EUR -250	Depreciation of business assets spread across their useful life.
Car benefit in kind	EUR 200	Private use adds a benefit in kind and increases taxable profit.
Profit	EUR 8,360	Result after turnover, costs, transport, depreciations, and benefit in kind.
Self-employed deduction	EUR -500	Deduction lowers profit when you qualify and it is enabled.
Starter deduction	EUR -200	Extra deduction for starters when enabled.
WBSO deduction	EUR -150	R&D deduction applied when enabled.
Profit after entrepreneur deductions	EUR 7,510	Profit after entrepreneur deductions, base for SME exemption.
SME profit exemption	EUR -1,010	Exemption calculated as a percentage of profit after deductions.
Deductible premiums	EUR -120	Premiums such as disability insurance or annuity.
Mortgage interest deduction	EUR -300	Mortgage interest for an owner-occupied home, spread across periods.
One-time financing costs	EUR -200	One-time mortgage costs in the year paid.
Periodic costs	EUR -50	Recurring home-related costs spread across periods.
Taxable income box 1	EUR 5,810	Box 1 base after deductions and exemptions.
Base tax	EUR 2,100	NettoWise first calculates annual box 1 tax using brackets and rates, then spreads it across the remaining months. It accounts for tax already applied so the current period absorbs the difference and the year-to-date total matches.
General tax credit	EUR -350	Tax credit based on income and fiscal rules.
Labour tax credit	EUR -420	Tax credit based on employment income.
Rate adjustment for deductions	EUR 120	Correction for deductions against the adjustment rate.
Income tax	EUR 1,450	Base tax minus credits plus the rate adjustment.
Income-related Zvw contribution	EUR 420	Contribution calculated on profit up to the yearly cap.
Total tax	EUR 1,870	Sum of income tax and Zvw contribution for the period.
Net income	EUR 6,490	What remains after taxes and contributions for the period.

What this means

This order keeps fiscal rules applied consistently. If you change one component, the effect flows through all subsequent steps.

Swen van Zanten

Developer

Periods and gross profit per year

NettoWise uses 12 periods per year, each matching a calendar month.

Salary details and components

Explanation of the salary detail page and what each section shows.

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