Use this free freelance profit calculator to find out exactly how much you keep after taxes and business expenses. Enter your gross annual income, deductions, self-employment tax rate, and retirement contributions to see your net profit, take-home rate, and quarterly estimated tax payments.
Freelancers and self-employed professionals face a unique tax burden: no employer splits the tax bill with you. This calculator accounts for self-employment tax, federal income tax brackets, and common deductions so you can plan your rates and pricing with real numbers.
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Find your true take-home after taxes & expenses
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| Tool | Best For | Affiliate Rate |
|---|---|---|
| FreshBooks ⭐ | Invoicing + expense tracking | $55/sale + $5/trial |
| Upwork ⭐⭐⭐ | Finding freelance clients | 70% first contract (up to $150) |
| Bonsai ⭐ | Contracts + project tracking | 200% first month + 30%/yearly |
| Toggl Track ⭐ | Time tracking + billing | 30% first payment |
| QuickBooks Self-Employed | Mileage + tax prep | 10% per sale |
| Fiverr ⭐ | Finding clients + RevShare | 25% first + 10% RevShare 12mo |
Self-employment tax = 15.3% of net self-employment income (12.4% Social Security + 2.9% Medicare). It's applied to 92.35% of your net freelance income. The IRS lets you deduct half of SE tax when calculating your adjusted gross income (AGI), which reduces your income tax bill. Use our freelance profit calculator to see the full impact.
Common freelancer deductions: home office (simplified or actual method), business software (FreshBooks, Adobe CC), equipment (computer, monitor), professional development, business insurance, marketing, travel for business, and health insurance premiums (self-employed only). Track everything in FreshBooks to maximize your deductions and lower your tax bill.
A safe rule of thumb: set aside 25–30% of gross freelance income for taxes (federal + state + SE). High earners in top brackets may need 35–40%. The key is making quarterly estimated tax payments to the IRS (and state) to avoid penalties. Use our freelancer take-home calculator to know your exact number.
Federal brackets for single filers: 10% ($0–$11,000), 12% ($11k–$44k), 22% ($44k–$95k), 24% ($95k–$183k), 32% ($183k–$231k), 35% ($231k–$578k), 37% ($578k+). Self-employment income is taxed as ordinary income on top of SE tax. Our freelance profit calculator uses current brackets.
An S-Corp election can save 9.6% in SE tax by paying yourself a reasonable salary (taxed as W-2) and taking remaining profits as distributions (not subject to SE tax). However, S-Corp tax filing costs $1,000–$3,000/year in accounting fees and requires payroll. Usually only worth it above $80,000 in net freelance income. Consult a CPA before making this election.
This calculator provides estimates for informational purposes only. Consult a licensed CPA or tax professional for advice specific to your situation.