French Financial Calculation Methods & Formulas
This page explains the formulas and methods used in each calculator tool.
Urssaf Calculator
Net Salary Before Tax
This calculation uses the Urssaf API to determine the net salary before tax based on the gross salary.
API Call: "salarié . rémunération . net . à payer avant impôt"
The API takes into account all mandatory social contributions according to French law, including:
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Health insurance (Assurance maladie)
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Pension contributions (Retraite)
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Unemployment insurance (Assurance chômage)
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Other social contributions
Net Salary After Tax
This calculation uses the Urssaf API to determine the net salary after income tax based on the gross salary.
API Call: "salarié . rémunération . net . payé après impôt"
The calculation can use either:
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Standard progressive tax rates (when no personal rate is provided)
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A custom flat tax rate specified by the user
Total Charges
Total Charges = (Gross Salary - Net Salary Before Tax) + (Net Salary Before Tax - Net Salary After Tax)
This represents the total amount deducted from the gross salary, including both social charges and income tax.
Retirement Tools
Retraite Base Estimated
Monthly Pension = (Income * Proratisation * (Trimestres-Worked/172)) / 12
Where:
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Income: The lower of average salary or PASS (plafond annuel de sécurité sociale)
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Proratisation: Base rate of 50% with reductions for missing trimestres
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Trimestres-Worked: Number of trimestres contributed (years worked * 4)
Proratisation Calculation:
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If retirement age is 67 or higher: Automatically 50%
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If trimestres worked is 172 or higher: 50%
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Otherwise: 50% - (1.25% * number of missing trimestres), with a minimum of 37.5%
Retraite Complementaire Estimated
Monthly Complementaire = (Total Points * Point Value * Age Factor) / 12
Where:
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Total Points: Either directly provided or calculated as (Average Points per Year * Years Worked)
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Point Value: Current Agirc-Arrco point value (1.4386€ as of Nov 2024)
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Age Factor: Reduction factor based on age and trimestres
Age Factor Calculation:
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Minimum retirement age is 57
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If retirement age is 67 or higher: 100%
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If missing less than 20 trimestres: The more advantageous of:
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100% - (1% * missing trimestres)
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100% - (4% * years below 67)
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If missing 20+ trimestres: 100% - (4% * years below 67)
Total Retirement Income
Total Monthly Income = Monthly Pension (Base) + Monthly Pension (Complementaire)
This represents the total monthly retirement income from both the basic state pension and the complementary pension.
Tax Tools
The tax tools page provides information about various tax thresholds and calculations based on the PASS value and different types of revenue.
The PASS (Plafond Annuel de la Sécurité Sociale) is a reference value used in many French tax and social security calculations. It is updated annually.
PUMA Tax
PUMA Tax = 6.5% × (A - 0.5 × PASS) × [1 - (R / (0.2 × PASS))]
Where:
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A: Capital revenue (capped at 8×PASS)
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R: Professional revenue
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PASS: Plafond Annuel de la Sécurité Sociale
PUMA Tax Conditions:
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No tax if professional revenue ≥ 20% of PASS
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No tax if capital revenue ≤ 50% of PASS
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Otherwise, tax is calculated using the formula above
Social Charges and Income Tax on Capital Revenue
Non-PEA Capital: 17.2% Social Charges + 12.8% Income Tax = 30.0% Total
PEA Capital: 17.2% Social Charges only (Income Tax exempt)
Different tax treatments apply to different types of capital revenue:
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Non-PEA Capital: Subject to both social charges (CSG/CRDS) and income tax
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PEA Capital: Subject only to social charges, exempt from income tax