Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Company car
A company car you also drive privately is a benefit in kind: it raises the gross figure on which tax and contributions are due, but it is never paid out to you. This calculator shows what that costs in net pay each month — under the 1 % rule and, if you want, against the logbook method. For fully electric cars with a list price up to 100.000 €, only a quarter of the value counts (threshold in force since 1 July 2025).
Your company car under the 1 % rule
339,60 €
is what the company car costs in net pay each month — that is the tax and social security on the benefit in kind of 720,00 €.
| Gross list price (rounded down) | 45.000,00 € | full list price (1 %) |
|---|---|---|
| Benefit in kind | 720,00 € | 1 % + 0,03 % per km |
| Gross liable to tax and contributions | 4.720,00 € | Cash pay + benefit |
| Monthly cost (tax + social security) | 339,60 € | that much less net pay |
- The gross list price is rounded down to a full 100 € (R 8.1 (9) no. 1 sentence 6 LStR): 45.000,00 €.
- The benefit in kind only raises the gross figure liable to tax and contributions — it is never paid out. The monthly cost is the additional tax and social security it triggers.
Terms used on this page
Each term has its own page with a plain-language explanation, the technical detail and a worked example.
- Company car (Firmenwagen) — A company car you may also use privately is a benefit in kind, taxed and charged with contributions like salary.
- Gross list price (Bruttolistenpreis) — The manufacturer's recommended price at first registration, including optional extras and VAT — even for a used or leased car.
How the figures are calculated
The 1 % rule: flat, but not always dearer
One percent of the gross list price per month, plus 0,03 % per kilometre of the commute. What counts is the list price at first registration, rounded down to a full 100 € — not the price paid, and not even with a discount or a used car.
The logbook: accurate but laborious
Keep a proper logbook and you are taxed on the private share of the actual costs. That pays off with a high list price and little private use — and it demands gap-free records.
Electric and hybrid: a quarter or a half
For electric vehicles only a quarter of the list price is applied, provided it does not exceed a statutory ceiling; above that and for certain hybrids, half.
Example: 4.000 € gross, 45.000 € list price, 20 km, combustion engine
| Benefit in kind per month | 720,00 € |
|---|---|
| Taxable gross | 4.720,00 € |
| Net cost per month | 339,60 € |
A benefit in kind of 720 € costs 339,60 € net — barely half, because tax and social security fall only on the benefit and the benefit itself is never paid out.
What this calculator does not cover
Pretending to be complete is the costliest mistake a financial calculator can make. These points are deliberately absent — either because they need details this page does not ask for, or because they cannot be substantiated in general terms:
- Contributions by the employee towards purchase or running costs reduce the benefit.
- Per-trip valuation of the commute (0,002 % per km and trip) instead of the 0,03 % flat rate — worthwhile with fewer than 15 trips a month.
- The commuting allowance in the tax return, which partly offsets the effect.
Related calculators
- Gross to net — the base calculation the benefit in kind builds on
- Salary sacrifice — the other direction: gross pay into provision rather than into a benefit