Tools you might need next
Free online self-employment tax calculator to estimate SE tax, quarterly payments, and deductible portions. Plan taxes for freelancers and 1099 workers.
Free online gig economy calculator to estimate hourly earnings for rideshare, delivery, and freelance gigs after costs. Compare platforms and maximize profit.
Free online quarterly tax calculator to estimate IRS estimated tax payments for self-employed income. Avoid underpayment penalties with accurate amounts.
Subtract all recurring and raw materials costs (platform fees, advertising, supplies, software) from gross monthly sales.
Net Side Income = Gross Revenue - Cost of Goods - Subscriptions - Platform FeesCalculates the real return on your time by dividing net profit by the total active hours spent working on the project.
Effective Hourly Wage = Net Monthly Profit ÷ Monthly Active HoursCalculate self-employment tax (15.3% on 92.35% of profits) plus your marginal federal/state income tax rate to find what to save.
Tax Set-Aside = Net Monthly Profit × (14.1% SE tax + Marginal Income Tax %)Updated: July 2026
Selling handmade jewelry with $3,200 monthly sales, spending $1,200 on supplies and 40 hours of monthly labor.
→ Net profit: $2,000; True hourly wage: $50/hour; Tax set-aside: ~$600 (at 30% effective rate)
Earning $1,800 a month driving, but incurring heavy fuel costs and vehicle depreciation ($0.67 IRS mileage rate).
→ Tax deduction value: $1,005; Net profit: ~$795; True hourly wage: ~$13.25/hour
Consulting on retainer for $5,000/month with low overhead ($250 software subscriptions) and 50 hours of monthly labor.
→ Net profit: $4,750; True hourly wage: $95/hour; Tax set-aside: ~$1,425
Running a side hustle involves tracking revenues against unique operational and tax expenses. This calculator determines your true hourly wage, net monthly profits, and estimates the necessary tax set-aside to avoid surprise IRS bills.