Continue your plan
Useful next calculations
When to use this calculator
- Before accepting a pay change, bonus or contribution arrangement.
- When you want a simple take-home or conversion estimate before payroll or filing.
- When you need to convert between hourly, monthly and annual pay.
- When you want to compare two pay scenarios using the same assumptions.
A realistic US planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Net Self-Employment Profit ($) | 80000 |
After entering these figures, review se tax, deductible half and qbi deduction (est.) together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
SE Tax
Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result.
Deductible Half
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
QBI Deduction (est.)
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Effective SE Rate
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator estimates US self-employment tax for sole proprietors, single-member LLC owners, freelancers, and independent contractors. SE tax is computed on 92.35% of net profit — this adjustment accounts for the fact that employees do not pay FICA on the portion of wages equal to the employer's payroll tax contribution. For 2024, the Social Security component of 12.4% applies only to the first $184,500 of SE income; the Medicare component of 2.9% applies to all SE income with no ceiling. An additional 0.9% Medicare surtax applies above $200,000 for single filers but is not modelled here due to its dependence on total household income.
The deductible half of SE tax is the IRS's mechanism for giving self-employed individuals the same after-tax treatment as employees whose employers' FICA contributions are not included in employees' gross income. The QBI deduction estimate shown is based on 20% of net profit before the SE deduction, capped at 20% of adjusted income after the SE deduction, and does not account for the W-2 wage limitation or specified service trade restrictions that apply at higher income levels. Always use Schedule SE (Form 1040) and consult a CPA or tax professional for your final return.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Frequently asked
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