The gap between what you charge and what you keep
The number on your invoices is not the number you live on. Between the two sit business expenses, self-employment tax, and income tax — and for a first-year freelancer, that gap is genuinely shocking. This calculator walks the whole distance, subtracting each piece in order, so you can see your realistic take-home before you spend money you do not actually have.
How it gets to your take-home
It works in the same order the tax system does. First it subtracts your business expenses to find your net profit. Then it calculates self-employment tax — roughly 15.3% on 92.35% of that profit — which covers Social Security and Medicare. Finally it applies your income-tax rate to your profit after the deductible half of SE tax. What survives all three steps is your estimated take-home, and the tool shows what percentage of your gross that actually represents.
Why the percentage is the wake-up call
Most freelancers are surprised to learn they keep far less of their gross than they assumed. That single percentage is why the "set aside 25–30% of every payment for tax" habit exists — and why budgeting from your invoice total is the classic way to end up short in April. If you want to break the tax piece down on its own, the self-employment tax calculator and the quarterly tax calculator go deeper.
An estimate, not a tax return
This tool uses a flat income-tax rate and approximate 2026 self-employment figures to give you a fast, planning-grade number. Your real bill depends on deductions, credits, your state, and the progressive bracket system. Treat the result as a budgeting guide, and confirm the specifics with a tax professional or the IRS. To make sure you are claiming everything you can, see our guide on freelancer tax write-offs.