Tax Estimate Calculator: Set Aside the Right Amount for Taxes

Freelancers don’t have tax withheld from pay. You need to set aside money from each payment so you can pay estimated tax during the year and avoid a large bill at filing time. A tax estimate calculator gives you a rough amount based on revenue, expenses, and a typical percentage.

The tool is not tax advice. It multiplies profit (revenue minus expenses) by a set-aside % (often 25–35%) and shows the amount to put away. Transfer that to a separate savings account and pay estimated tax on your authority’s schedule (e.g. quarterly). Consult an accountant for your situation.

What Does This Tool Do?

Three inputs: annual revenue, annual business expenses, and set-aside percentage. It computes profit and then profit × percentage = amount to set aside.

Revenue is total business income; expenses are deductible only. Profit is what’s subject to income and self-employment tax. Use 25–35% as a starting point; your accountant can suggest a number. If you’re partway through the year, use year-to-date and annualise or enter expected full-year numbers. When in doubt, set aside more.

How to Use It (Step-by-step)

1
Enter your annual revenue. Use the total you expect to earn from the business in the year, or use year-to-date and annualise if you are partway through.
2
Enter annual business expenses. Use deductible expenses only; when in doubt, ask an accountant. Do not include personal expenses.
3
Enter your set-aside percentage. 28–30% is a common starting point for many freelancers; adjust for your country and bracket. When in doubt, use a higher percentage.
4
Read the suggested set-aside amount. Transfer that amount (or a portion each time you get paid) to a separate savings account.
5
Pay estimated tax on the schedule required by your tax authority (e.g. quarterly). Use an accountant or tax software to file.

Key Features

Profit-based: uses revenue minus expenses, not gross revenue.

Adjustable percentage: you choose the set-aside rate.

Clear disclaimer: the tool is not tax advice.

No storage: runs in the browser; no data sent to a server.

Use Cases

Use case 1

Deciding how much to transfer to a tax savings account from each payment.

Use case 2

Checking whether you have set aside enough so far this year.

Planning cash flow

know roughly how much you will owe so you can reserve it.

Catching up

if you have not set aside enough so far, run the calculator with full-year numbers and divide the shortfall by remaining months to increase your monthly set-aside.

FAQ

It depends on your country and income level. 25–35% is a common range for income and self-employment tax. An accountant can give you a number for your situation.

Use profit (revenue minus expenses). Tax is typically on profit, not gross revenue. The calculator already subtracts expenses.

No. This tool only estimates how much to set aside. You still need to file returns and pay according to your tax authority's rules. Use an accountant or tax preparer for filing.

The calculator only considers business revenue and expenses. Your total tax will depend on all income. Set aside the amount this tool suggests for business profit, and discuss combined income with your accountant for a full picture.

Follow your tax authority’s schedule. In the US, estimated tax is typically paid quarterly. Missing deadlines can result in penalties. Use the set-aside account to pay on time.

After filing, you can use the surplus for the next year’s estimated tax or withdraw it. It is better to over-save than to under-save and face a large bill plus interest or penalties.