Tax Set-Aside Calculator

How to use this calculator

1. Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
2. Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
3. Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

When to use this calculator

• When you first start earning business income and need a savings percentage.
• Every time a payout lands, to size the transfer into your tax savings account.
• Before a quarterly estimated payment, to check whether you've saved enough.
• After a big month, when the tax owed grows faster than it feels like it should.

Formula

Taxable profit = Income − Expenses · Tax = Taxable × Rate · Additional to save = Tax − Already saved

Worked example

$5,000 income, $1,500 expenses, 25% rate, $0 saved.

1. Taxable = 5000 − 1500 = $3,500
2. Tax = 3500 × 0.25 = $875

Answer: ≈ $875 to set aside

How it works

Expert tips

• Keep tax savings in a separate account so it never looks like spendable cash.
• Round your set-aside percentage up a few points — being over-saved is a much better problem.
• Update your expense figure as you go; guessing low means saving less than you need.
• Keep a copy of the numbers you used, so a tax professional can check your assumptions quickly.

How to interpret your results

• Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
• Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
• A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
• Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Common mistakes

• Using gross income instead of income minus expenses.
• Forgetting self-employment tax on top of income tax.
• Waiting until quarterly filing to set anything aside.

Related Guides

Go deeper with plain-English guides on the same topic.

• What Is a Good Profit Margin?

  What counts as a healthy profit margin — and how it changes depending on what you sell and where.

  Read guide →

• What Is A Good Profit Margin? Complete Small Business Profit Margin Guide

  A 2026 profit margin guide — gross vs net vs contribution, what counts as a good margin, healthy benchmarks by industry and platform, formulas, and improvement strategies.

  Read guide →

• Pricing Psychology Explained: 25 Strategies That Increase Sales

  A 2026 pricing psychology guide — what it is, why it works, 25 specific techniques with examples, platform-specific applications, before/after scenarios, and ethics.

  Read guide →

• How to Price Handmade Products

  A simple formula for pricing handmade work that covers materials, labor, overhead, and profit.

  Read guide →

FAQ

What tax rate should I use?

In the US, many small sellers use 25–30% (federal + state + self-employment). Your actual rate depends on your situation — check with a tax pro.

Is this tax advice?

No. It's a planning estimate only. Tax rules vary by country and situation — verify with a qualified professional.

Do I use gross income or profit?

Enter gross income and your business expenses separately. Tax is generally owed on the profit that's left, not on everything that landed in your account.

What counts as a business expense here?

Costs you paid to run the business — materials, platform fees, shipping, software, ads, packaging. Keep receipts; rules on what's deductible vary.

How often should I set money aside?

The safest habit is every time you get paid. Moving the percentage the same day removes the temptation to spend it.

Why is the result only an estimate?

Rates, brackets, deductions, and local rules all change the real bill. This sizes a savings target so you're not caught short — it doesn't compute what you owe.

Related calculators

You may also find these tools helpful.

• Net Profit Calculator

  Universal net profit and margin after every business cost.

• Cash Flow Calculator

  Project ending cash and see if you cover your buffer.

• Monthly Profit Goal Calculator

  Sales per month, week, and day to hit a monthly profit target.

• Profit Margin Calculator

  Universal profit, margin, and markup for any product or channel.