Freelance Earnings Calculator
Enter your gross income to see exactly what you take home after platform fees, self-employment tax, income tax, and business expenses.
Full breakdown
Effective rates
Worked example
On $1,000 gross income with 10% platform fees, 15.3% SE tax, 22% federal tax, 5% state tax, and 10% expenses, you keep $478.12 — that's $0.478 per dollar earned.
How this calculator works
The calculator starts with your gross income and applies deductions in order: platform fees first, then business expenses, then taxes. Self-employment tax (Social Security + Medicare) is calculated on net earnings after expenses. You can deduct half of SE tax from your federal taxable income. Federal and state income taxes are applied to the remaining taxable income.
What affects your take-home
- Self-employment tax (Social Security + Medicare) is 15.3% on net earnings
- You can deduct half of self-employment tax from your income tax
- Business expenses reduce your taxable income — track everything
- Quarterly estimated tax payments avoid underpayment penalties
Frequently asked questions
What is self-employment tax?
Self-employment tax is 15.3% of your net self-employment income — 12.4% for Social Security (up to $168,600 in 2024) and 2.9% for Medicare. As an employee, your employer pays half; as a freelancer, you pay both halves.
How do I calculate my net freelance income?
Start from gross income, then subtract platform fees, self-employment tax (15.3%), federal income tax, and business expenses. Looked at together, these can reduce gross income by 30–45%, which is why net take-home is so much lower.
How much should I set aside for taxes as a freelancer?
A common rule is to set aside 25–35% of your earnings to cover self-employment tax and federal income tax. Your exact rate depends on your total income and tax bracket.
Can I deduct business expenses from my taxes?
Yes. Software subscriptions, hardware, home office, internet, phone, professional development, marketing, and travel for business are all deductible. Subtract them from gross income first, because they also lower your self-employment tax, not just income tax.
When should I pay estimated taxes?
Quarterly: April 15, June 15, September 15, and January 15 of the following year. If you expect to owe $1,000+ in taxes for the year, the IRS requires quarterly payments to avoid underpayment penalties.
Why does my take-home pay look lower than my gross income?
Freelancers pay self-employment tax, income tax, platform fees, and cover their own business expenses. Together these can cut gross income by 30–45%. This calculator shows each deduction so you can see exactly where the money goes.
Is this calculator using current tax rates?
Yes — it uses the 2024 standard deduction ($14,600 single), the Social Security wage base ($168,600), and current federal income tax brackets. The self-employment tax rate of 15.3% is fixed by law.