Freelancers pay their own tax, so it helps to put money aside from every payment. Enter your yearly income and the percentage you plan to set aside, and this calculator shows how much to save per invoice, per month and per quarter.
| Set aside from that invoice | – |
| Set aside per month | – |
| Set aside per quarter | – |
| Left for you each year | – |
How it works
Amount to set aside = income × percentage. Move that share of every payment into a separate savings account as soon as you are paid, so the money is there when a tax bill arrives. Monthly and quarterly amounts are the yearly total divided by 12 and by 4.
This calculator does not know your tax rate. Tax depends on your country, income, expenses, allowances and structure, so the percentage is your own estimate. Ask an accountant or read your tax authority’s guidance for a figure that fits you.
Example
On 60,000 of income, setting aside 25% is 15,000 a year, or 1,250 a month. From a 2,500 invoice you would put 625 aside.
Frequently asked questions
What percentage should I set aside?
It depends on your income, country and deductions. Many freelancers start with a cautious estimate and adjust after speaking to an accountant.
Do I pay tax on income or on profit?
Usually on profit, which is income minus allowable business expenses. Rules differ by country.
Where should I keep the money?
A separate savings account makes it harder to spend by mistake.
Comparing accounting software? See our guides to the best accounting software for freelancers in the US, the best free invoicing software for UK sole traders, Wave vs FreshBooks and FreshBooks vs QuickBooks.
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This calculator is for general information and is not tax advice. Check the rules that apply to you.
For the full federal calculation including Social Security and Medicare, see the self-employment tax calculator.