Get a demo Create free account →
Free tool · No account needed

Fixed overheads requirement calculator

Enter your total expenses from last year’s financial statements and the deductions that apply. This returns an indicative fixed overheads requirement under Article 13 of the IFR, with the full working shown line by line — and flags the deductions supervisors most often see claimed incorrectly.

IFR Art. 13 · RTS (EU) 2022/1455 · 14 deduction lines · working shown · nothing stored

The other regime

MIFIDPRU 4.5 adds an 80% own-account rule with no equivalent in RTS (EU) 2022/1455. UK fixed overheads →

Calculate your fixed overheads requirement

Runs in your browser · nothing uploaded

Use figures from your most recent audited annual financial statements, after distribution of profits. Leave any deduction blank if it does not apply — most firms use only two or three.

Deductions

Article 13(4) IFR and Article 1 of RTS (EU) 2022/1455
Staff bonuses and other remuneration Art. 13(4)(a) · RTS Art. 1(4) Deductible only where the firm has full discretion and staff cannot enforce payment, and where paying will not affect the capital position. Staff only — board and management are covered below.
Employees’, directors’ and partners’ shares in profits Art. 13(4)(b) · RTS Art. 1(3) Calculated on net profits. A fixed monthly management fee is not deductible, even where the board could reduce it.
Other appropriations of profits and variable remuneration Art. 13(4)(c) Only to the extent fully discretionary — not a payment that recurs at the same level each year.
Shared commission and fees payable Art. 13(4)(d) Only where payment is contingent on actually receiving the related commission or fee, and that receivable sits in total revenue.
Fees, brokerage and charges to CCPs, venues and brokers RTS Art. 1(6)(a) Only where directly passed on and charged to customers. Membership fees and loss-sharing obligations are not deductible.
Fees to tied agents Art. 13(4)(e) Tied agents as defined in Article 4(1)(29) MiFID II. Fully deductible.
Interest paid to customers on client money RTS Art. 1(6)(b) Only where there is no obligation of any kind to pay it.
Non-recurring expenses from non-ordinary activities Art. 13(4)(f) Genuinely one-off and outside ordinary activity. Reorganisations, licensing, marketing, fund formation and FX or provisioning effects do not qualify.
Expenditure from taxes RTS Art. 1(6)(c) Corporate tax falling due on annual profits only. Other taxes are not deductible.
Losses from trading on own account in financial instruments RTS Art. 1(6)(d)
Contract-based profit and loss transfer agreements RTS Art. 1(6)(e) Where the firm is obliged to transfer its annual result to the parent after the statements are prepared.
Expenditure on raw materials RTS Art. 2 Commodity and emission allowance dealers only, in connection with trading derivatives of the underlying commodity.
Payments into a fund for general banking risk RTS Art. 1(6)(f) · CRR Art. 26(1)(f)
Expenses on items already deducted from own funds RTS Art. 1(6)(g) · CRR Art. 36(1) For example amortisation of software or goodwill already deducted from own funds.
What this means: an indicative figure based only on what you entered. It is not a calculated regulatory requirement, and it is not advice. Your competent authority may adjust the FOR where there has been a material change in your activities, and several deductions carry conditions that depend on your contracts and accounting treatment. Confirm the result against your own financial statements before you rely on it.

The FOR is one of three own funds requirements. Pillar 1 Capital calculates all three, tracks K-factors continuously, and produces the IF templates — with free capital monitoring to start.

Create free account →
Scope

What this calculator does

Fixed overheads are one of the most commonly misreported figures in the IFR regime. This tool is a fast first pass on the arithmetic — it is not a substitute for the judgement each deduction requires.

It doesCalculate and show the working

  • Applies the Article 13(1) formula — 25% of fixed overheads for the preceding year.
  • Adds fixed expenses incurred by third parties on your behalf that are not already in your statements.
  • Annualises figures where the financial statements cover fewer than 12 months.
  • Itemises all fourteen deduction lines against their Article and RTS reference.
  • Shows the full working, so you can reconcile it against your own submission line by line.
  • Flags the deduction patterns supervisors most often challenge.

It does notDecide whether a deduction applies

  • Judge whether a bonus is genuinely discretionary or contractually enforceable.
  • Determine whether an expense is non-recurring and outside ordinary activity.
  • Assess whether a material change has occurred, or how your authority would adjust the FOR.
  • Calculate the market-maker deduction, which depends on your end-of-day inventory over the year.
  • Handle prudential consolidation or the group capital test.
  • Produce anything you can file. It is a calculator, not a return.

Filing the IF templates, not just checking a number?

The same calculation runs inside Pillar 1 Capital, alongside K-factor monitoring, the permanent minimum requirement and own funds composition — and produces the validated IF templates for submission.

See Pillar 1 Capital →
Why it matters

Three requirements depend on this figure

Getting the FOR wrong does not just misstate one number. It propagates.

Own funds

Article 11 requirement

Your own funds requirement is the highest of the permanent minimum requirement, the FOR, and the sum of your K-factors. For many firms the FOR is the binding one.

Liquidity

Article 43 requirement

The liquidity requirement is one third of the FOR, plus any add-on for guarantees given to clients. An overstated FOR ties up liquid assets you did not need to hold.

Classification

Class 2 and Class 3

Firms below the Article 12 thresholds are small and non-interconnected, and a narrower set of requirements applies — but the FOR applies either way.

Rules reviewed 21 August 2026 · IFR (EU) 2019/2033 Art. 13 · Commission Delegated Regulation (EU) 2022/1455

Nothing you type here leaves your browser

The calculation runs entirely in your own browser. No figure you enter is sent to REGREP, written to a log, saved to a database, or passed to any analytics tool.

Reload the page and everything is gone. If you want the calculation kept, versioned and reportable, that happens inside your account under our data processing agreement.

Questions

About the fixed overheads requirement

Which figures should I use?

Those in your most recent audited annual financial statements, after distribution of profits — or your annual financial statements where you are not required to have them audited. Where the statements cover fewer than twelve months, divide by the number of months covered and multiply by twelve. This calculator does that for you when you set the period.

What counts as an expense incurred by a third party on my behalf?

Fixed expenses that a parent, sister company, minority shareholder or tied agent bears for you and does not recharge — accommodation, IT, staff, management services through a personal holding company. They are added to your total expenses. Where a breakdown is available, add only your share; where it is not, add your share as it follows from your business plan. This is one of the most frequently omitted items.

Can I deduct all staff bonuses?

No. A bonus is deductible only where it depends on net profit: the firm must not be obliged to award further bonuses unless it makes a net profit, and either the bonus has already been paid or paying it will have no impact on the capital position. A bonus an employee is entitled to at all times cannot be deducted, and a fixed monthly management fee cannot be deducted even where the board has discretion to reduce it.

Are reorganisation costs non-recurring?

Generally not. Firms restructure with some regularity, so those costs are treated as ordinary. The same applies to licensing and licence-extension costs, marketing, staff activities and fund formation. Foreign exchange effects and specific provisions are also not non-recurring. A genuine one-off unrelated to operations — an anniversary event, for example — can qualify.

What is a material change, and does it affect my FOR?

A material change occurs where a change in your business activity produces a change of 30% or more in your projected fixed overheads for the current year, or a change of €2,000,000 or more in your own funds requirement based on those projected overheads. Where that happens, your competent authority may adjust your FOR. This calculator works from prior-year figures and does not model that adjustment.

Do you store the figures I enter?

No. Everything is calculated in your browser and discarded when you close or reload the page. Nothing is logged, stored or sent to analytics.

Can I use this for a UK firm under MIFIDPRU?

Not reliably. The UK framework follows a similar structure but the deduction list and the treatment of certain items differ. A separate MIFIDPRU calculator is planned. In the meantime, REGREP covers UK IFPR reporting inside the platform.

Calculating it once is a spreadsheet. Reporting it is a platform.

Create a free account and monitor your own funds and K-factors continuously — then produce the validated IF templates when they fall due.

Create free account → See prudential modules

No card required · free capital monitoring · nothing stored from this calculator