Why net profit overstates your paycheck
Net profit is a tax-reporting number, not a spending number. Before any of it is really "yours," it passes through self-employment tax, federal income tax, and — if you're saving for retirement — your Solo 401(k) contribution. This calculator runs your number through all three so the total on screen is one you can actually budget against.
The QBI deduction
Most self-employed filers also qualify for the Qualified Business Income deduction — generally 20% of your net business income after the self-employment tax adjustment and retirement contributions, subject to an overall limit tied to your taxable income. This calculator applies the simplified version of that formula; it doesn't yet handle the wage/UBIA limitations that apply to specified service businesses at high income, so treat the estimate as directional above roughly $200,000 in profit.
Common questions
Why isn't state tax included?
State income tax rules vary too widely by state to estimate accurately in one general tool — this calculator sticks to federal tax so the number stays reliable. Add your state's estimated rate on top for a fuller picture.
Does maxing my Solo 401(k) actually help my take-home?
It doesn't increase cash in your pocket today — that money goes to savings, not spending — but it does lower your taxable income, which is why the "federal income tax" line shrinks when you contribute more.
What if I have other income or deductions?
This tool only accounts for Schedule C profit, the standard deduction, and a Solo 401(k) contribution. Other income, itemized deductions, or credits will change your real number — use this as a starting estimate, not a final one.