VM Revenue Calculator

True marginal rate optimiser — salary vs dividends at every income band — 2026/27

Subscription revenue

Subscribers 10,000

0100k

Price per subscriber / month £5.00

£0.50£100

MRR

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monthly recurring revenue

ARR (inc. VAT)

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annual recurring revenue

ARR (excl. VAT)

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net of 20% VAT

Business costs (inc. VAT)

All costs including any VAT paid

Profit to retain in business

Kept in company after CT — not paid out

Number of founders / directors

Other personal income (each founder)

Rental, employment, interest etc.

VAT registered (standard 20%) Employment Allowance eligible (£5k off employer NI)

Effective marginal rates — salary vs dividends

The true cost of each £1 of income, accounting for corporation tax saved on salary. When salary's net cost is lower than the dividend rate, salary wins for that band.

Optimal take-home (all founders)

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Gross profit

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Total tax burden

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Corporation tax

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Retained in business

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Optimal salary & dividend split

Salary is extended into each band only where the net cost is lower than dividends. The calculator stops at the crossover point.

Revenue split (excl. VAT) —

VM Revenue Calculator

Subscription revenue

Effective marginal rates — salary vs dividends

Optimal salary & dividend split

Per founder — optimal breakdown

Full cost waterfall