Varied parameter
Income tax rate
0% → 30%
Income Tax Comparison
Software engineer in Berlin · The steady builder
This page compares financial outcomes for a Software engineer living in Berlin, Germany, following the The steady builder life scenario.
A balanced financial life built on predictable income growth, consistent saving, and long-term market participation. Progress comes from patience, stability, and compounding over time.
Berlin has a diverse economy with strong demand in technology and services, paired with a relatively high cost of living.
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 €30,800.
- 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 20%.
- Minimum annual living expenses are €18,000.
- 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.
🔁
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% | 922,386 | 593,860 | 1,414,544 | 99% | 55 |
| 10% | 825,238 | 530,957 | 1,264,124 | 98% | 56 |
| 20% | 724,426 | 469,274 | 1,108,734 | 94% | 58 |
| 30% | 618,632 | 404,158 | 950,457 | 85% | 59 |
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
