Freelancer Take-Home Calculator
Estimated take-home after self-employment tax and income tax.
Input sheet
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Self-employed income looks bigger than it spends, because two taxes hit before you keep a dollar: self-employment tax and income tax. This estimator follows the US rules so you can see roughly what actually lands in your pocket and how much to set aside.
How it works
Net profit (gross minus expenses) carries 15.3% self-employment tax on 92.35% of it; income tax applies after deducting half the SE tax.
First it finds your net profit — gross income minus business expenses. Self-employment tax of 15.3% is charged on 92.35% of that net profit (the IRS adjustment that accounts for the employer-half deduction). Income tax is then applied to your net profit after deducting half of the self-employment tax, which is itself tax-deductible.
The income-tax rate here is a flat estimate you supply, not a full bracket calculation, so treat the result as a planning figure rather than a filed return. Deductions, credits, and state taxes will shift the real number.
Net profit = Gross − Expenses; SE tax = Net × 0.9235 × 0.153; Income tax = (Net − ½ SE tax) × Income-tax rate; Take-home = Net − SE tax − Income tax.
Worked examples
$90,000 gross, $12,000 expenses, 18% income-tax rate. → About $53,900 take-home, with roughly $11,021 of SE tax and $13,048 of income tax.
Net profit is $78,000. SE tax is $78,000 × 0.9235 × 0.153 ≈ $11,021. Taxable income is $78,000 − $5,510 = $72,490, and 18% of that is about $13,048, leaving roughly $53,900.
$60,000 gross, $5,000 expenses, 12% income-tax rate. → About $41,100 take-home.
Net is $55,000; SE tax ≈ $55,000 × 0.9235 × 0.153 ≈ $7,771; taxable ≈ $55,000 − $3,886 = $51,114; income tax ≈ $6,134; take-home ≈ $41,095.
Tips & gotchas
- Set aside roughly 25–30% of net profit for taxes so a quarterly bill never blindsides you.
- Every legitimate business expense lowers both your SE tax and income tax, so track them diligently all year.
- Make quarterly estimated payments — the US system expects tax as you earn, and underpayment can trigger penalties.
- This is a flat-rate estimate; a tax professional can capture brackets, deductions, and state tax for a far tighter number.
FAQ
Why is self-employment tax 15.3%?
It covers both the employee and employer halves of Social Security (12.4%) and Medicare (2.9%). As an employee those halves are split with your employer; self-employed, you pay both.
What is the 92.35% adjustment?
Self-employment tax is charged on 92.35% of net profit, which approximates removing the employer-half of the tax from the base, mirroring how employee wages are treated.
Does this include state taxes?
No. It estimates federal self-employment tax and a flat income-tax rate only. State income tax, where it applies, would further reduce your take-home.
How accurate is this estimate?
It is a planning approximation. Real returns involve tax brackets, the standard deduction, credits, and possible QBI deductions, so use a professional or full tax software before filing.
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