Calculate your true freelance take-home pay after self-employment tax, income tax, business expenses, health insurance, and retirement contributions.
Invoicing, Tax & Tools
Bill clients, track time, and file taxes — software built for the self-employed
The gap between gross freelance revenue and actual take-home pay surprises almost every new freelancer. A $100,000 revenue figure is compelling until you subtract self-employment tax, income taxes, health insurance, retirement savings, and business expenses — and realize you're keeping $55,000-65,000.
This isn't bad news — it's essential information for setting your rates correctly. Knowing your true take-home tells you whether your current rate is financially sustainable or whether you need to charge more.
The biggest deduction most freelancers underestimate is self-employment tax. At 15.3% of net earnings (applied to 92.35% of income), a freelancer earning $80,000 pays approximately $11,300 in SE tax alone — before any income tax.
Health insurance is the second major variable. Employer-sponsored coverage is often worth $5,000-15,000/year in employer contributions. As a freelancer, you pay all of this yourself, reducing your effective take-home significantly. This is why the true breakeven between freelance income and a salary requires earning roughly 1.5× the equivalent salary.
Take-Home Pay
The net income a freelancer keeps after paying all taxes, business expenses, health insurance, and other deductions from gross revenue.
Self-Employment Tax
The 15.3% US tax paid by freelancers covering both the employer and employee portions of Social Security and Medicare.
Net Income
A freelancer's total earnings after deducting all business expenses and taxes — the actual profit the business generates.
Freelancers face multiple deductions that employees don't see: self-employment tax (15.3%), health insurance (typically employer-subsidized for employees), retirement savings with no employer match, and business expenses. A freelancer earning $100,000 gross might take home $55,000-65,000 after all these deductions.
Yes — self-employed individuals can deduct 100% of health insurance premiums for themselves, spouse, and dependents above the line (reducing your AGI). This is one of the most valuable deductions available to freelancers.
Use your marginal rate as a conservative estimate: 12% if taxable income is under $47,150, 22% if under $100,525, 24% if under $191,950. Your effective rate will be lower, but the marginal rate is a safe planning assumption.
As a starting rule of thumb: set aside 25-35% of every payment for taxes. The exact amount depends on your income level, state, deductions, and retirement contributions. Our quarterly tax calculator can give you a more precise estimate.
It depends on how you define 'take-home.' Retirement contributions are deferred income — you'll access it later. Including them shows your true spendable income now. This calculator includes them so you can see the realistic picture of your monthly cash flow.
Self-Employment Tax Calculator
Estimate your self-employment tax (SE tax), federal income tax, and total tax bill as a freelancer or independent contractor.
Quarterly Tax Calculator
Calculate how much to pay in quarterly estimated taxes to avoid IRS underpayment penalties as a freelancer.
Profit Margin Calculator
Calculate your freelance gross and net profit margin to understand how much of your revenue you actually keep.