Varied parameter
Income tax rate
0% → 30%
Income Tax Comparison
Software engineer in Cluj-Napoca · The steady builder
This page compares financial outcomes for a Software engineer living in Cluj-Napoca, Romania, 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.
Cluj-Napoca combines strong tech opportunities with a high quality of life.
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 €33,880.
- 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 €10,350.
- 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 3%.
- 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% | 1,023,479.94 | 662,972.224 | 1,564,618.252 | 100% | 48 |
| 10% | 920,037.6000000001 | 595,632.669 | 1,407,895.1469999999 | 100% | 49 |
| 20% | 816,627.06 | 528,368.826 | 1,251,159.8539999998 | 100% | 50 |
| 30% | 712,287.3500000001 | 461,515.82300000003 | 1,089,851.058 | 100% | 51 |
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
