Freelancers and small-business owners get caught out by taxes because nothing is withheld. Enter your monthly profit and this shows what to set aside every month and quarter — self-employment tax plus income tax — so you're always ready.
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Planning estimate only — general information to help you think it through, not financial, tax, or legal advice. Your numbers stay in your browser.
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The tipping points around your result — so you know the conditions, not just the answer:
Self-employment tax = 15.3% (Social Security + Medicare) on 92.35% of your net profit — this is the part employees split with an employer, so as your own boss you owe both halves. Income tax = your estimated effective rate on the profit.
Added together and divided into a monthly figure, that's your set-aside. Multiply by three for the quarterly estimated payment.
A planning estimate, not tax advice. Actual tax depends on deductions, credits, filing status, state, and total household income — confirm with a tax professional and the IRS estimated-tax rules.
A common safe rule is 25–30% of your net profit, set aside every month. The exact figure is self-employment tax (15.3% of 92.35% of profit) plus your income tax rate. Setting it aside monthly means you always have the quarterly estimated payment ready.
It's the 15.3% Social Security and Medicare tax on your net self-employment earnings (calculated on 92.35% of profit). Employees split this with their employer; when you're self-employed you pay both halves, which is why your set-aside is higher than a comparable salary's withholding.
The IRS expects quarterly estimated payments (roughly April, June, September, and January). Missing them can trigger penalties even if you pay in full at year-end — which is why setting the money aside monthly, then paying quarterly, keeps you safe. Confirm dates and rules with the IRS.
Last reviewed: September 2026. Free to use, no signup — a ToolWise Digital decision engine.
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