Work out second income requirement instantly with clear inputs, formula shown and shareable results.
A second income must be grossed up for tax, because only the net amount closes the household gap. Including the savings target in the requirement prevents the second income from simply funding higher spending.
Second income
Gross needed = (expenses + savings target - primary income) / (1 - tax rate)
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.
Because the shortfall is a net figure. A 20% tax rate means a quarter more must be earned than the gap.
Commuting, childcare and convenience spending can consume a large share, so net contribution should be tested honestly.