Contractor vs Employee: Berlin 2026 — Net Income Calculator
See whether going independent actually pays more after tax, social security, and business overheads.
As an Employee
As a Contractor / Freelancer
Enter your rate as if you worked 52 weeks — we'll adjust for time off below.
e.g. 4 weeks off = 4
Going contractor in Berlin puts 5.543 € more in your pocket per year.
| Metric | Employee | Contractor |
|---|---|---|
| Annual Revenue / Gross Salary | 60.000 € | 80.000 € |
| Unbilled Weeks Adjustment | — | 6.154 € |
| Actual Gross Income | 60.000 € | 73.846 € |
| Business Overheads | — | 4.700 € |
| Taxable Income | 60.000 € | 69.146 € |
| Social Security | 12.150 € | 14.002 € |
| Income Tax | 6.837 € | 8.587 € |
| Effective Tax Rate | 31.6% | 32.7% |
| Net Annual Income | 41.013 € | 46.557 € |
| Net Monthly Income | 3.418 € | 3.880 € |
To match your employee take-home of 41.013 €/year, you need to invoice at least 49.523 €/year as a contractor in Berlin.
That's roughly 952 €/week or 190 €/day.
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Frequently Asked Questions
Is it worth going contractor in Berlin?
Yes — at a revenue of 80.000 €/year, a contractor in Berlin takes home 46.557 €/year (effective rate: 32.7%), compared to 41.013 €/year as an employee (effective rate: 31.6%).
What contractor rate do I need to match my employee salary in Berlin?
To match an employee take-home of 41.013 €/year in Berlin, you need to invoice at least 49.523 €/year as a contractor — roughly 952 €/week or 190 €/day.
How this calculator works
This calculator compares the net income of a contractor (B2B / freelance) against an employee earning the same gross amount. It applies each country's corporate and personal tax rules, social security, and estimates the break-even invoicing rate a contractor needs to match an employee's take-home pay.
What's included
- Employee income tax and social security
- Contractor / B2B corporate tax and distributions
- Break-even contractor day rate
- Effective tax rate comparison
What's not included
- IR35 / deemed employment rules (UK-specific)
- VAT registration and reclaim
- Business expenses or deductions
- Employer pension contributions
Data sources: Official tax authority publications for each jurisdiction: HMRC (UK), IRS (US), Autoridade Tributária (PT), KVK/Belastingdienst (NL), IRAS (SG). Updated for 2025/26.