Varied parameter
Income tax rate
0% → 30%
Income Tax Comparison
Freelancer / Contractor in Munich · Independent and uneven
This page compares financial outcomes for a Freelancer / Contractor living in Munich, Germany, following the Independent and uneven life scenario.
A non-linear income path shaped by project-based work, variability, and self-managed risk. Flexibility is high, but consistency must be actively created rather than assumed.
Munich offers very strong income potential in high-skill sectors, along with some of the highest living costs in Germany.
The comparison focuses on how changing the Income tax rate influences long-term results, while all other assumptions remain constant.
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual labor income is €24,662.
- Labor income grows annually at an average rate of 4%.
- The labor income tax rate varies between 0% and 30%.
- The saving rate is set to 15%.
- Minimum annual living expenses are €19,500.
- Savings are invested with stochastic annual returns.
- The average annual return is 5%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 2%.
- The simulation includes stochastic life events such as unemployment, and health issue.
- These events may temporarily affect income, expenses, or net worth.
- Financial independence is defined as having net worth equal to 25 times annual expenses.
- Bankruptcy is triggered if net worth remains below €0 for 2 consecutive years.
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Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome. Most simulations fall between these two values.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 0% | 488,026 | 315,496 | 764,251 | 52% | 61 |
| 10% | 428,751 | 277,681 | 672,808 | 37% | 62 |
| 20% | 340,489 | 226,549 | 528,219 | 15% | 63 |
| 30% | 226,389 | 152,710 | 341,412 | 1% | 64 |
How Your Financial Life Evolves
These charts show how each scenario affects long-term outcomes, including expected wealth, downside risk, and the likelihood of achieving financial independence.
Net Worth Median
Net Worth Range
Fi Probability
Fi Median Age
