Freelance Take-Home After Expenses Calculator

How it works

Net profit = gross − expenses · SE tax = 92.35% of profit × (12.4% up to wage base + 2.9%) · Taxable = profit − ½ SE tax − deduction · Take-home = profit − SE tax − income tax

A freelancer’s invoice total is not their pay. First, business expenses come off to leave net profit. Then self-employment tax applies to 92.35% of that profit — 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare — because a freelancer owes both the employee and employer halves. Half of that SE tax is deductible before federal income tax, which is figured on progressive brackets after the standard or itemized deduction. What survives all three layers is the real take-home, and it is usually far below the headline number.

Worked example

On $90,000 gross with $12,000 of expenses, net profit is $78,000. SE tax on 92.35% of that ($72,033) is about $11,021. Half of that ($5,510) plus a $14,600 deduction leaves $57,890 taxable, for roughly $7,800 of federal income tax. Take-home is 78,000 − 11,021 − 7,800 ≈ $59,179 — about 66% of what was invoiced.

Frequently asked questions