How the Self-Employed Income Calculator works
Estimate self-employed net income after tax and expenses. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this self-employed income calculator to estimate business profit, tax reserve and take-home income. It is useful for freelancers, consultants and small business owners who need to separate revenue from spendable income.
Formula
Take-home income = (revenue - expenses) x (1 - tax reserve rate)
- Annual revenue is gross business income.
- Annual business expenses reduce profit.
- Tax reserve rate estimates money set aside for tax.
Worked example
For $120,000 revenue, $25,000 expenses and a 30% tax reserve rate, the calculator estimates $95,000 profit and $66,500 after tax reserve.
Common mistakes
- Treating revenue as take-home pay.
- Forgetting quarterly tax payments or self-employment taxes.
- Underestimating software, insurance, equipment or professional fees.
FAQs
Should I set aside tax from revenue or profit?
This calculator estimates tax reserve from profit after expenses, but your actual tax situation may vary.
Does this replace bookkeeping?
No. It is a planning estimate, not accounting or tax filing.
Should I include personal expenses?
No. Include business expenses here and handle personal budgeting separately.