This salary simulator gives you a reliable idea of what your financial compensation would be as a freelance IT consultant.
This is no guesswork, but it starts with my own actual costs and income.
Before diving into this simulator, I would like to emphasize that the reliability of this simulator is based on following elements:
- for the first 9 years as a freelance IT consultant, I did my own payroll administration instead of outsourcing this;
- in those 9 years, I also did the accountancy of my company all by myself;
- moreover, I had this bookkeeping thoroughly reviewed by an experienced accountant every year.
That is why I am convinced that I am well placed to give you a reliable simulation of what your financial compensation would look like as a freelance IT consultant.
This salary simulator is an Excel spreadsheet with 3 tabs.
On the first tab of this simulator – “Input” – you can adjust the calculation to your own personal situation:
On the second tab of this simulator – “Financial statements company” – the financial statements are automatically made for your company of which you are the manager and shareholder.
On the third tab of this simulator – “Personal compensation” – you will find 3 automatically calculated sections:
- section “New net personal remuneration as being self-employed”: the sum of monthly remuneration to manager and annual dividend to shareholder
- section “Current net personal remuneration as being an employee”
- section “Extra net salary as being self-employed versus being an employee”: the difference.
The following video briefly explains how to correctly use this salary simulator for freelance IT consultants.