Methodology
How Our Calculators Work
Each calculator on this site follows a transparent methodology: we show the formula, state the assumptions, and list limitations up front. Below is an overview of each calculator's approach.
Profit Margin Calculator
Profit margin = (Revenue - Cost) / Revenue x 100
Assumptions
Uses simple cost and revenue inputs to derive profit, margin, and markup. Assumes all costs are included in the cost figure. Does not account for taxes, overhead allocation, or multi-product mixes.
Limitations
For planning estimates only. Does not replace accounting records. Does not include operating expenses, taxes, or depreciation.
Gross Margin Calculator
Gross margin = (Revenue - COGS) / Revenue x 100
Assumptions
Calculates gross profit and gross margin from revenue and cost of goods sold. Assumes COGS includes all direct production costs. Does not deduct operating expenses or overhead.
Limitations
Only reflects direct costs. Does not account for indirect overhead, period costs, or taxes. Service businesses should map direct labor to COGS.
Markup Calculator
Markup = (Selling price - Cost) / Cost x 100
Assumptions
Derives markup, profit, and margin from cost and selling price. Markup is calculated against cost; margin is calculated against selling price. Assumes single-item or single-order scope.
Limitations
Does not consider demand elasticity, competitor pricing, or volume discounts. Best used as a starting point for pricing decisions.
Break Even Calculator
Break-even units = Fixed costs / (Price per unit - Variable cost per unit)
Assumptions
Divides fixed costs by contribution per unit (price minus variable cost) to find the break-even volume. Assumes constant price and variable cost per unit. Rounds up to the next whole unit.
Limitations
Assumes linear cost behavior. Does not account for step costs, bulk discounts, or capacity constraints. Price must exceed variable cost for the model to work.
Freelance Rate Calculator
Hourly rate = (Desired income + Overhead) / (Billable hours/week x Working weeks)
Assumptions
Divides total annual revenue needs (desired income plus overhead) by total billable hours to find the minimum hourly rate. Your rate should also cover quarterly estimated taxes and self-employment tax. Use our Quarterly Tax Calculator to factor tax costs into your rate.
Limitations
Does not account for income tax, self-employment tax, retirement savings, or non-billable admin hours. Actual take-home pay will be lower than the desired income figure entered. Use our 1099 Tax Calculator for a full tax estimate.
Day Rate Calculator
Day rate = Hourly rate x Hours per day
Assumptions
Multiplies hourly rate by billable hours per day to produce a day rate. Annual and monthly revenue assume consistent working days. Does not account for rate variation across clients or projects.
Limitations
Assumes a single flat rate for all work. Does not include expenses, taxes, or unpaid time between projects.
Project Rate Calculator
Project rate = Estimated hours x Hourly rate x (1 + Buffer %)
Assumptions
Calculates a base project price from estimated hours and hourly rate, then adds a percentage buffer for scope creep, revisions, and unforeseen work. The buffer is a planning safeguard, not a discount.
Limitations
Accuracy depends on the hour estimate. Underestimated projects still lose money even with a buffer. Does not include expenses, licensing, or third-party costs.
Cash Flow Forecast Calculator
Net cash flow = Monthly revenue - Monthly expenses; Runway = Starting cash / |Net cash flow| (when negative)
Assumptions
Projects a simple linear cash flow by subtracting average monthly expenses from average monthly revenue, then multiplying by the forecast period. Runway is calculated only when net cash flow is negative.
Limitations
Assumes flat revenue and expenses each month. Does not model seasonal variation, growth, one-time purchases, or tax payments. Best for ballpark planning.
ROI Calculator
ROI = (Final value - Initial investment) / Initial investment x 100; Annualized ROI = ((1 + ROI) ^ (12 / months) - 1) x 100
Assumptions
Calculates simple ROI from the difference between final value and initial investment. Annualized ROI uses compound annualization: ((1 + ROI) ^ (12 / months) - 1). Assumes a single upfront investment with a single return at the end.
Limitations
Does not account for cash flows during the investment period, inflation, or opportunity cost. Annualized ROI assumes compounding; for periods under 1 month, results may be misleading.
Loan Repayment Calculator
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1] where P = principal, r = monthly rate, n = number of payments
Assumptions
Uses the standard amortization formula for fixed-rate loans with equal monthly payments. Monthly rate is annual rate divided by 12 and converted to a decimal. Total interest is the sum of all payments minus the principal.
Limitations
Assumes fixed interest rate and no early repayment. Does not include origination fees, insurance, or other loan costs. Actual payments may vary for variable-rate loans.
Business Loan Calculator
Monthly payment = P x [r(1+r)^n] / [(1+r)^n - 1] where P = principal, r = monthly rate, n = number of payments
Assumptions
Uses the standard amortization formula for fixed-rate loans with equal monthly payments. Monthly rate is annual rate divided by 12 and converted to a decimal. Total interest is the sum of all payments minus the principal. If financing equipment specifically, compare buying vs leasing with our Equipment Buy vs Lease Calculator before committing to a loan.
Limitations
Assumes fixed interest rate and no early repayment. Does not include origination fees, collateral requirements, or other loan costs. Actual payments may vary for variable-rate loans.
Working Capital Calculator
Working capital = Current assets - Current liabilities; Working capital ratio = Current assets / Current liabilities
Assumptions
Subtracts current liabilities from current assets to find working capital. The working capital ratio (also called current ratio) is assets divided by liabilities. A ratio above 1 indicates positive working capital.
Limitations
Snapshot measurement — does not account for timing of cash flows, seasonal variations, or the quality of receivables. A high ratio may also indicate inefficient asset use.
Runway Calculator
Runway = Cash on hand / Monthly burn rate
Assumptions
Divides cash on hand by monthly burn rate to calculate runway in months. Assumes constant monthly burn and no additional revenue or funding during the period.
Limitations
Assumes flat burn rate with no new revenue or funding. Does not model growth, seasonal changes, or one-time expenses. Best for rough planning.
Restaurant Profit Margin Calculator
Profit margin = (Selling price - Food cost) / Selling price x 100
Assumptions
Uses the same margin formula as the standard profit margin calculator but framed for restaurant menu pricing. Food cost per plate includes direct ingredients only.
Limitations
Does not include labor, rent, utilities, or overhead. Restaurant profitability depends on total cost management, not just ingredient margins.
Consulting Hourly Rate Calculator
Base hourly rate = (Desired income + Overhead) / (Billable hours/week x Working weeks); Adjusted rate = Base rate x (1 + Scope adjustment %)
Assumptions
Extends the freelance rate calculator with a scope adjustment multiplier. Base rate covers income and overhead. The adjustment lets consultants account for project complexity, urgency, or long-term discounts.
Limitations
Does not include taxes, retirement contributions, or non-billable time. The scope adjustment is subjective — calibrate against past project profitability.
Ecommerce Profit Margin Calculator
Total cost = Product cost + Shipping cost + (Selling price x Platform fee %); Profit = Selling price - Total cost
Assumptions
Calculates total cost by adding product cost, shipping cost, and platform fees (applied as a percentage of selling price). Profit and margin are derived from the total cost and selling price.
Limitations
Does not include returns, advertising costs, storage fees, or other marketplace expenses. Actual margins may be lower once handling, returns, and marketing are included.
Selling Price Calculator
Selling price = Cost / (1 - Target margin %)
Assumptions
Derives the selling price from cost and target margin using the formula Price = Cost / (1 - Margin%). Profit and markup are computed from the resulting price. Assumes the margin is calculated against the selling price.
Limitations
Does not consider demand elasticity, competitor pricing, or volume discounts. The target margin assumes the price is achievable in the market. Use alongside the break-even calculator for volume planning.
Product Pricing Calculator
Suggested price = (Product cost + Shipping + Target profit) / (1 - Platform fee %)
Assumptions
Calculates the selling price needed to cover product cost, shipping, platform fees (as a percentage of the final price), and a target profit. Uses the formula Price = (Cost + Shipping + Profit) / (1 - Fee%).
Limitations
Assumes a single platform fee applied to the final price. Does not include advertising costs, returns, variable shipping rates, or fixed per-transaction fees like $0.30. Actual costs may be higher.
Service Pricing Calculator
Base price = (Hourly rate x Estimated hours) + Expenses; Project price = Base price x (1 + Risk buffer %)
Assumptions
Calculates a service project price by combining estimated labor (hours x rate), direct expenses, and a risk buffer for scope uncertainty. The effective hourly rate shows what you actually earn per hour after the buffer is applied.
Limitations
Accurate pricing depends on good time estimation. Underestimating hours still leads to low effective rates even with a buffer. Does not include opportunity cost or client management overhead.
Target Profit Calculator
Required revenue = Cost + Target profit / (1 - Tax rate %); Required margin = (Profit before tax / Required revenue) x 100
Assumptions
Works backward from an after-tax profit goal. Divides the target profit by (1 - tax rate) to find the pre-tax profit needed, then adds total costs to determine required revenue. Useful for setting annual revenue targets.
Limitations
Uses a flat effective tax rate. Actual tax obligations depend on jurisdiction, business structure, deductions, and other factors. Use for planning, not for tax filing.
Discount Margin Calculator
Discounted price = Original price x (1 - Discount %); Discounted profit = Discounted price - Cost; Volume multiplier = Original profit / Discounted profit
Assumptions
Calculates the impact of a discount on per-unit profit and the volume increase needed to maintain the same total profit. Uses straightforward arithmetic: each discount dollar comes directly out of profit unless volume compensates.
Limitations
Assumes customers buy at the exact discount level. Does not model the demand curve, cannibalization of full-price sales, or psychological pricing effects. The volume multiplier is a mathematical target, not a demand prediction.
Etsy Profit Calculator
Total fees = Selling price x (Transaction fee % + Payment fee %) / 100; Net profit = Selling price - Product cost - Shipping cost - Total fees; Suggested markup = (Selling price - Product cost) / Product cost x 100
Assumptions
Calculates Etsy-specific profit by applying transaction and payment processing fees to the selling price, then deducting product cost and shipping. Uses current standard Etsy fee rates as defaults (6.5% transaction + ~3% processing).
Limitations
Does not include Etsy listing fees ($0.20 per item), offsite ads fees, or shipping label adjustments. Actual Etsy fees depend on your specific Etsy Payments country and whether the sale comes through an offsite ad.
Shopify Profit Calculator
Transaction cost = Selling price x Transaction fee % / 100; Net profit per unit = Selling price - Product cost - Shipping - Transaction cost; Annualized = (Net profit x 100 - Subscription) x 12
Assumptions
Calculates per-unit profit by deducting product cost, shipping, and credit card processing fees from the selling price. Annualized profit multiplies per-unit profit by your monthly units sold (default 100), subtracts the monthly Shopify subscription, and annualizes over 12 months.
Limitations
Does not include app subscriptions, theme costs, domain fees, advertising spend, or returns. Annualized profit assumes constant monthly unit sales — enter your own units-per-month estimate for an accurate figure.
COGS Calculator — Cost of Goods Sold
COGS = Materials + Direct Labor + Overhead; Cost per Unit = COGS ÷ Units Produced
Assumptions
Uses direct material, labor, and overhead inputs to calculate total COGS. Per-unit cost assumes uniform production. Does not account for inventory changes, spoilage, or indirect materials under GAAP.
Limitations
For estimation purposes only. Does not replace accounting records or GAAP COGS calculations. Does not include inventory valuation methods (FIFO, LIFO) or period costs.
Employee Cost Calculator — True Cost of Hiring
Total Cost = Salary + (Salary × Tax Rate) + (Salary × Benefits%) + (Salary × Overhead%); Burden = (Total Cost - Salary) / Salary × 100
Assumptions
Calculates the employer's true cost by adding payroll taxes (employer portion of FICA/Medicare), benefits (health insurance, retirement matching, PTO), and overhead (equipment, training, office) to base salary. Industry estimates: benefits typically 25-35%, overhead 10-20%.
Limitations
Estimates only. Actual costs vary by location, benefits package, and role. Does not include recruitment costs, onboarding, severance, or workers' compensation insurance.
Business Valuation Calculator — Estimate Your Business Worth
Revenue Value = Annual Revenue × Revenue Multiple; Profit Value = Annual Profit × Profit Multiple; Blended = (Revenue Value + Profit Value) ÷ 2
Assumptions
Uses two common small business valuation methods: revenue multiple (industry standard multiples range from 0.5x-3.0x depending on sector) and SDE/profit multiple (typically 2.0x-5.0x). The blended estimate provides a reasonable range. Industry multiples vary significantly by sector, growth rate, and market conditions. Data sources include BizBuySell, Pepperdine Private Capital Markets Report, and industry M&A databases.
Limitations
This is a rough estimate, not a professional business appraisal. Does not account for growth rate, market position, intellectual property, customer concentration, or goodwill. Always consult a qualified business appraiser or M&A advisor for an accurate valuation.
Retainer Pricing Calculator — Monthly Retainer Fee
Retainer Fee = (Hourly Rate × Hours) × (1 + Complexity%) × (1 - Discount%); Effective Hourly = Retainer Fee / Hours
Assumptions
Builds from your base hourly rate with two adjustments: a complexity premium (when retainer work is more or less complex than typical) and a retainer discount (the trade-off for guaranteed monthly income). The effective rate gives you a sanity check.
Limitations
For planning estimates only. Does not account for scope creep, travel time, or out-of-pocket expenses. Retainer agreements should include scope boundaries and overage terms for work beyond committed hours.
Payback Period Calculator — Break-Even Time
Payback Period = Initial Investment ÷ Annual Net Return; ROI = (Annual Return × Years - Investment) ÷ Investment × 100
Assumptions
Simple payback calculation without discounting (time value of money). For capital-intensive investments, consider using discounted cash flow (DCF) analysis for a more accurate picture.
Limitations
Does not account for time value of money, inflation, or ongoing maintenance costs. Use for quick comparisons between investment options, not as a standalone financial decision tool.
Inventory Turnover Calculator
Inventory Turnover = COGS ÷ Average Inventory; Days to Sell = 365 ÷ Turnover Ratio
Assumptions
Uses the standard inventory turnover formula comparing COGS to average inventory. A higher ratio indicates faster inventory movement and better working capital efficiency. Industry benchmarks vary: grocery stores may turn inventory 15-20x/year, while furniture stores may turn 2-4x/year.
Limitations
For planning estimates only. Does not account for seasonal variations, inventory write-downs, or differences in inventory costing methods (FIFO vs LIFO). Average inventory calculated as (beginning + ending) / 2 is a simplification.
Customer Lifetime Value Calculator — LTV
Average Lifespan = 1 / (1 - Retention Rate); LTV = Avg Purchase × Frequency × Lifespan; Profit = LTV - (Cost Per Customer × Lifespan)
Assumptions
Uses the standard CLV formula with churn rate (1 - retention rate) to estimate customer lifespan. Assumes constant purchasing behavior over the customer relationship. More sophisticated CLV models include discount rates and variable margins.
Limitations
For planning estimates only. Assumes constant purchase behavior and retention rate. Does not account for discount rates, customer acquisition costs, or changes in pricing over time. Use cohort analysis for more accurate CLV tracking.
1099 Tax Calculator — Self-Employment Tax Estimator
SE Taxable = Net Earnings × 92.35%; SE Tax = SE Taxable × 15.3%; Income Tax = Net Earnings × Rate%; Quarterly = Total Tax ÷ 4
Assumptions
Estimates total self-employment tax burden using: (1) SECA tax of 15.3% (12.4% Social Security + 2.9% Medicare) applied to 92.35% of net earnings per IRS Schedule SE rules; (2) income tax estimate using your combined federal and state rate. Does not account for Social Security wage base cap, QBI deduction, retirement contributions, or other credits.
Limitations
This is an estimate, not tax advice. Does not include Social Security cap (~$176,100 (IRS 2025)), 0.9% Additional Medicare Tax above $200K/$250K, QBI deduction (20% of business income), self-employed health insurance deduction, or retirement plan contributions. Consult a CPA for exact calculations.
Customer Acquisition Cost (CAC) Calculator — CAC & LTV:CAC Ratio
CAC = (Marketing Spend + Sales Spend) / New Customers; LTV = Avg Revenue/Month × Lifespan; LTV:CAC = LTV / CAC
Assumptions
Calculates CAC as total acquisition spend divided by new customers in a period. LTV is computed as monthly revenue per customer multiplied by average customer lifespan. The LTV:CAC ratio is the primary metric for SaaS and subscription businesses — a ratio above 3:1 is generally considered healthy.
Limitations
Assumes constant customer spend and retention. Does not account for customer expansion/contraction revenue, discount rates, or variable costs to serve. CAC should ideally be segmented by channel (paid, organic, referral) for accurate optimization.
Churn Rate Calculator
Churn Rate = Lost Customers / Starting Customers × 100; Annual = 1 - (1 - Monthly Churn)^12; Revenue Lost = Lost × Avg Rev; Net Change = New - Lost; NRR = 1 - (Revenue Lost / (Starting × Avg Rev))
Assumptions
Calculates monthly churn rate by dividing lost customers by starting customers. Annualized churn uses compound probability: 1 - (1 - monthly churn rate)^12. Revenue lost multiplies churned customers by average revenue per customer. Net revenue retention accounts for expansion revenue from new customers relative to total starting revenue.
Limitations
Assumes lost customers have the same average revenue as the overall base. Does not distinguish between voluntary and involuntary churn, or segment churn by customer cohort. Best used as a high-level health metric — supplement with cohort retention curves for deeper analysis.
ARR Calculator
Current ARR = MRR × 12; Projected MRR = MRR × (1 + Growth% - Churn%)^N; Projected ARR = Projected MRR × 12; Annual Growth = (1 + Growth%)^12 - 1; Months to Double = log(2) / log(1 + Growth% - Churn%)
Assumptions
Calculates ARR as MRR × 12. Projects future ARR using compound growth: MRR × (1 + growth rate - churn rate)^N. Implied annual growth rate uses compound monthly growth: (1 + monthly rate)^12 - 1. Months to double uses the rule of 72 adapted to monthly compounding: log(2) / log(1 + net growth rate).
Limitations
Assumes constant growth and churn rates over the projection period. Does not model seasonality, expansion revenue from existing customers, or pricing changes. Best used for early-stage SaaS planning — update projections quarterly as real data accumulates.
Depreciation Calculator
Straight-line = (Cost - Salvage) / Life; DDB Year 1 = (2 / Life) × Cost; SYD Year 1 = (Life / SYD sum) × (Cost - Salvage)
Assumptions
Calculates depreciation using three standard methods: (1) Straight-line — constant annual amount over the useful life, simplest method; (2) Double Declining Balance (DDB) — accelerated method with 2x the straight-line rate, front-loading depreciation in early years; (3) Sum-of-Years' Digits (SYD) — accelerated method using a declining fraction. Does not calculate MACRS or Section 179 — consult IRS Pub 946 for tax depreciation.
Limitations
For financial planning estimates only. Does not calculate IRS MACRS depreciation tables, Section 179 expensing, or bonus depreciation. Tax depreciation must follow IRS rules which may differ from these accounting methods. Asset half-year conventions not applied.
Double Declining Balance Depreciation Calculator
DDB rate = 2 / Useful Life; Year 1 depreciation = Asset Cost x DDB rate, capped so book value does not fall below salvage value
Assumptions
Uses the double declining balance method: twice the straight-line rate applied to beginning book value. This page shows the first-year result and caps depreciation at the salvage value floor. It is for book/planning depreciation, not IRS MACRS tax tables.
Limitations
Only calculates the first year of DDB depreciation. It does not switch to straight-line in later years, apply half-year conventions, or calculate MACRS, Section 179, or bonus depreciation.
Depreciation Rate Calculator
Depreciation rate = 1 / Useful Life x 100; Annual depreciation = (Cost - Salvage) / Useful Life
Assumptions
Calculates the straight-line depreciation rate and expense. The rate is 1 divided by useful life; annual expense is depreciable base divided by useful life; monthly expense is annual expense divided by 12.
Limitations
Uses straight-line book depreciation only. Tax depreciation may use MACRS, Section 179, bonus depreciation, listed-property limits, or special conventions.
Credit Card Processing Fee Calculator
Fee = Amount × (Rate/100) + Fixed Fee. Net = Amount - Fee. Effective Rate = Fee / Amount × 100
Assumptions
Calculates credit card processing fees using standard percentage + fixed fee model (interchange-plus or flat-rate). Monthly totals are based on transaction volume. Does not account for chargeback fees, monthly gateway fees, PCI compliance fees, or batch fees.
Limitations
Estimate for planning purposes. Actual fees vary by processor, card type (rewards cards have higher rates), and monthly volume. Qualified/Non-qualified rates not applied. Does not include Amex-specific rates or international card fees.
Late Payment Fee Calculator
Percentage: Fee = Invoice × (Rate%/month) × Months. Flat: Fee = Flat Fee × Months
Assumptions
Calculates late fees using either a percentage of the invoice amount per month, a flat fee per overdue period, or a combination. Does not include compounding or legal maximum interest rates which vary by state.
Limitations
Estimate only. Actual late fees should comply with your invoice terms and state usury laws. Many states cap late fees at 5-10% of the invoice amount. Not legal advice.
Sales Commission Calculator
Commission = Sale Amount × (Rate/100). Net Payout = Commission - Base Offset.
Assumptions
Calculates commission as a percentage of total sale value. Supports a draw/advance offset where base salary is deducted from earned commissions. Does not account for quota attainment, multi-tier structures, or team splits.
Limitations
Simple commission calculation for planning. Does not include tiered/accelerated commission rates, quota-based multipliers, team splits, or clawback provisions. Adjust for your specific compensation plan.
W-2 vs 1099 Cost Calculator
W-2 take-home = Salary + Benefits − Payroll taxes (FICA) − Income tax; 1099 take-home = Gross − SE tax (15.3% on 92.35%) − Income tax
Assumptions
Compares total W-2 compensation (salary + employer-paid health insurance + 401(k) match + PTO value + other benefits) after FICA payroll taxes and income tax against 1099 contractor gross income after self-employment tax (15.3% on 92.35% of net earnings) and income tax. PTO value is calculated as daily rate × days off.
Limitations
Assumes equal hours worked in both scenarios. Does not include state-specific disability insurance (SDI), workers' comp costs, or the administrative burden of self-employment (accounting, legal). Benefits are estimated — actual employer contributions vary. Not tax advice.
Quarterly Estimated Tax Calculator
SE tax = Net income × 92.35% × 15.3%; Total tax = SE tax + (Net income × Income tax rate) − W-2 withholding; Quarterly payment = Remaining tax ÷ 4
Assumptions
Calculates self-employment tax (15.3% on 92.35% of net earnings) and estimated federal/state income tax. Accounts for W-2 withholding already paid during the year. Safe harbor comparison uses prior year tax (100% rule) or 90% of current year tax, whichever is smaller.
Limitations
Uses flat tax rate estimate. Actual tax liability depends on filing status, deductions, credits, and other income sources. SE tax caps at $176,100 of wages (IRS 2025) for the Social Security portion. Quarterly deadlines: Jan 15, Apr 15, Jun 15, Sep 15. Not tax advice.
Buy vs. Lease Equipment Calculator
Buy net cost = Down payment + Total loan payments − Tax savings (depreciation + interest); Lease net cost = Total lease payments − Tax savings (lease deductions)
Assumptions
Compares total 5-year cost of buying with a loan (down payment + amortized loan payments − tax savings from depreciation and interest deduction) vs leasing (total lease payments − tax deduction on lease expenses). Straight-line depreciation over 5 years with $0 salvage value. Assumes 100% business use.
Limitations
Does not include maintenance costs, residual/resale value, early buyout options, or Section 179 bonus depreciation (which can be up to $1.22M in 2026). Lease terms vary — some include maintenance. Actual tax savings depend on your specific tax situation. For planning purposes only, not tax advice.
Pricing Strategy Calculator — Compare 3 Models
Cost-Plus: Price = Cost / (1 - Margin%); Competitive: Price = Competitor ± adjustment; Value-Based: Price = Cost × Value Multiplier
Assumptions
Compares three pricing models: (1) Cost-Plus — adds a target margin to product cost; (2) Competitive — prices at or near market average, showing the resulting margin; (3) Value-Based — multiplies cost by a perceived value multiplier reflecting customer willingness to pay. All three models are shown side by side with profit margins, allowing direct comparison.
Limitations
Value-based pricing is subjective — your actual customer willingness to pay may differ from the estimated multiplier. Competitive pricing assumes the market average is accurate. Does not account for brand positioning, demand curves, or price-volume tradeoffs. Use as a strategic comparison tool, not a final pricing decision.
Side Hustle to Full-Time Calculator
Runway = Savings / Expenses; Crossover = when compounding Side Income > Expenses; Full Replacement = when Side Income > Monthly Salary equivalent
Assumptions
Projects future side income using compound monthly growth. Compares savings runway (months you can survive with zero income) against the crossover point (when side income exceeds expenses) and full income replacement (when side income matches salary). Risk buffer adjusts the target savings amount. Readiness score combines savings progress and income progress weighted by risk tolerance.
Limitations
Assumes smooth, linear income growth — real income is lumpy and unpredictable. Does not account for tax changes, health insurance costs, or lifestyle adjustments. The recommended quit date is a financial estimate only; personal factors like client pipeline, market conditions, and psychological readiness matter equally. Not financial advice.
Annual Business Budget Calculator
Each expense = Annual Revenue × Category%; Annual Profit = Revenue − Sum(All Expenses); Profit Margin = Profit ÷ Revenue × 100
Assumptions
Allocates annual revenue across 5 major expense categories using percentages. Provides monthly targets by dividing annual figures by 12. Benchmarks: rent 5-15%, labor 20-40%, COGS 20-50%, marketing 5-12%, other 10-20% of revenue depending on industry.
Limitations
Uses flat percentage assumptions — real expenses vary month to month. Does not account for seasonality, one-time expenses, or tax obligations. Use as a planning template; update monthly with actuals. Industry-specific benchmarks are general guidelines, not prescriptive.
Freelance Tax Deduction Calculator — Maximize Your 1099 Write-Offs
Home Office = sq ft × $5 (max $1,500) + Equipment + Travel + Health Insurance + Retirement = Total Deductions. Taxable Income = Income − Total Deductions. Tax Savings = Total Deductions × Marginal Rate.
Assumptions
Estimates 5 major self-employed deductions: (1) Home office — simplified method at $5/sq ft (max 300 sq ft); (2) Equipment & software — 100% deductible in year of purchase; (3) Travel & mileage — IRS standard rates; (4) Health insurance — 100% above-the-line deduction; (5) Retirement contributions — SEP IRA or Solo 401(k). Tax savings estimate uses your marginal rate (assumed from income bracket). Does not include meals, continuing education, Section 179, or QBI deduction.
Limitations
Uses simplified home office deduction — not the actual expense method, which may yield a larger deduction. Mileage assumes standard rate; actual vehicle costs may differ. Does not include Section 179 depreciation, bonus depreciation, meals (50%), continuing education, or the QBI deduction (20% of qualified business income). Consult a CPA for your specific situation. These are educational estimates, not tax filing numbers.
Business Expense Ratio Calculator
Each ratio = Category Cost ÷ Revenue × 100. Health score graded against benchmarks: rent < 10% = good, 10-15% = watch, > 15% = high.
Assumptions
Calculates key operating expense ratios and compares against small business benchmarks. Benchmarks: Rent 5-10% (service) / 8-15% (retail); Labor 20-30% (service-heavy) / 30-40% (labor-intensive); Marketing 5-12% (established) / 10-20% (growth); COGS 20-50% (product) / 0-15% (service). Health score combines all ratios into a 0-100 grade.
Limitations
Benchmarks are general guidelines based on US small business data. Your industry, business model, and growth stage may justify ratios outside these ranges. Startups typically have higher marketing ratios; mature businesses should trend toward lower overhead. Not a substitute for CPA review.
Labor Burden Calculator
Burdened rate = Base rate × (1 + FICA% + FUTA% + WorkersComp% + Benefits%). Total annual = Burdened rate × hours/week × 52 weeks.
Assumptions
Adds employer-side payroll taxes (FICA 7.65%, FUTA 0.6%) and workers' compensation insurance to base wages, plus benefits expressed as a percentage of wages. Calculates the fully burdened hourly rate and annual cost. Does not include state-specific SUTA rates, general liability insurance, or non-wage overhead like office space.
Limitations
FUTA applies only to first $7K of wages per employee. Workers comp rates vary widely by state and job classification — the default 2% is a general estimate. Does not include SUTA (state unemployment) which adds 0.3-8% depending on state. Benefits percentage is a rough estimate; actual costs depend on plan selection.
Net to Gross Calculator
For W-2: Gross = Net / (1 − Tax Rate). For 1099: Gross = (Net + Expenses) / (1 − Tax Rate − 0.9235 × 0.153). Includes SE tax at 15.3% on 92.35% of gross minus expenses.
Assumptions
Works backward from target net income to required gross income, accounting for self-employment tax (15.3% on 92.35% of net earnings) and income tax. For W-2 only: divides by (1 − tax rate). For 1099: solves for gross using a combined tax equation including SE tax, income tax, and business expenses.
Limitations
Uses flat effective tax rate — actual tax brackets are progressive. Does not include state-specific taxes, QBI deduction, retirement contributions, or health insurance deductions. SE tax calculation ignores Social Security wage base cap ($176,200 in 2026). For planning and rate-setting, not tax filing.
No Tax on Overtime Calculator
Deductible premium = 0.5 × Regular Rate × OT Hours; Deduction = min(Premium, Cap) − Phase-out; Phase-out = $100 per $1,000 of MAGI over $150,000 ($300,000 joint).
Assumptions
Implements the qualified overtime deduction created by the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) for tax years 2025–2028. Only the premium portion of overtime — the extra 'half' in time-and-a-half pay required by the Fair Labor Standards Act — qualifies, not the full overtime wage. The deduction is capped at $12,500 (single) or $25,000 (married filing jointly) and reduced by $100 for each $1,000 of MAGI above $150,000 ($300,000 joint).
Limitations
Estimate only, not tax advice. The deduction lowers federal income tax only — Social Security and Medicare (FICA, 7.65%) still apply to all overtime, and many states do not conform. It is available only to non-exempt W-2 employees, not self-employed contractors, and is claimed on the new Schedule 1-A. The deduction applies to tax years 2025–2028 unless extended by Congress. Verify figures against IRS.gov before filing.
No Tax on Tips Calculator
Deduction = min(Annual Tips, $25,000) − Phase-out; Phase-out = $100 per $1,000 of MAGI over $150,000 ($300,000 joint).
Assumptions
Implements the qualified tips deduction created by the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) for tax years 2025–2028. Qualified tips in customarily-tipped occupations are deductible up to $25,000 per year, reduced by $100 for each $1,000 of MAGI above $150,000 ($300,000 joint). Tips must be reported (on a W-2, 1099, or directly). For self-employed recipients the deduction cannot exceed the net income of the business that generated the tips.
Limitations
Estimate only, not tax advice. The deduction reduces federal income tax only — Social Security and Medicare (FICA, 7.65%) still apply to tips, and tips must still be reported. Self-employed people in a Specified Service Trade or Business (SSTB) under Section 199A do not qualify, and the self-employed deduction is limited to the business's net income. Many states do not conform. Applies to tax years 2025–2028 unless extended. Verify on IRS.gov before filing.
1099-K Threshold Checker
Federal 1099-K is issued if Gross Payments > $20,000 AND Transactions > 200 (both required). A lower state threshold, if entered, can trigger one on its own.
Assumptions
Applies the federal Form 1099-K reporting threshold restored by the One Big Beautiful Bill Act: a third-party settlement organization must report only when a payee exceeds both $20,000 in gross payments and 200 transactions in a calendar year. This reversed the lower $600 threshold that had been scheduled under the American Rescue Plan Act. The checker also flags a lower state threshold if you enter one, because several states require reporting below the federal limit.
Limitations
Informational estimate, not tax advice. Receiving — or not receiving — a 1099-K does not change what you owe: all income from goods and services is taxable and must be reported regardless of any form. Personal reimbursements (splitting a meal, gifts) are not taxable income. State thresholds and platform practices vary, and some platforms issue forms below the federal limit. Confirm current rules on IRS.gov.
QBI Deduction Calculator
QBI Deduction = min(20% × Qualified Business Income, 20% × Taxable Income). Above the income threshold, SSTBs phase out over a $50,000 (single) / $100,000 (joint) range.
Assumptions
Estimates the Section 199A Qualified Business Income (QBI) deduction, which the One Big Beautiful Bill Act made permanent in 2025. The deduction is generally 20% of qualified business income from pass-through entities, capped at 20% of taxable income (excluding net capital gains). Below the 2025 taxable-income thresholds of $197,300 (single) / $394,600 (joint), the full 20% applies regardless of business type. Above the threshold, Specified Service Trades or Businesses (SSTBs) phase out over a $50,000 (single) / $100,000 (joint) range.
Limitations
Estimate only, not tax advice. For incomes above the threshold, non-SSTB businesses are further limited by W-2 wages paid and the unadjusted basis of qualified property (UBIA) — those limits are not modeled here, so high-income non-SSTB results may be overstated. Excludes net capital gains from the taxable-income limit and does not handle REIT/PTP income, aggregation, or losses carried forward. 2025 thresholds shown; confirm current-year figures on IRS.gov.
Tiered Commission Calculator
Tier 1 = min(Total Sales, T1) × R1; Tier 2 = min(max(0, Total Sales − T1), T2 − T1) × R2; Tier 3 = max(0, Total Sales − T2) × R3; Total Commission = T1 + T2 + T3; Net Payout = Total Commission − Base Salary; Effective Rate = Total Commission / Total Sales × 100
Assumptions
Calculates tiered commission using three progressive rate bands: Tier 1 applies the first rate to sales up to the first threshold, Tier 2 applies the second rate to sales between thresholds 1 and 2, and Tier 3 applies the third rate to all sales above the second threshold. Base salary/draw is deducted from total commission earned. The effective rate is total commission divided by total sales. Assumes a standard 3-tier structure and that tier thresholds are non-overlapping (T1 < T2).
Limitations
Fixed 3-tier model — some plans use 2, 4, or more tiers, which this calculator does not model. Does not account for quota attainment, accelerators (bonus multipliers above quota), team splits, or clawback provisions. Net payout can be negative if the base salary draw exceeds earned commission (recoverable draw scenario). For planning estimates — adjust for your specific compensation plan.
Conversion Rate Calculator
Conversion rate = Conversions / Visitors x 100
Assumptions
Divides the number of conversions by total visitors and multiplies by 100. Works across any scenario where you have a conversion event and a total audience: landing page visitors, email recipients, ad impressions, or checkout starts.
Limitations
Does not account for multi-touch attribution, time decay, or assisted conversions. A single conversion rate number doesn't distinguish between traffic source quality. Use alongside ROAS and AOV for a full marketing picture.
ROAS Calculator
ROAS = Ad Revenue / Ad Spend; Profit per $1 = (Ad Revenue - Ad Spend) / Ad Spend; Break-even ROAS = 1x (revenue equals spend)
Assumptions
Divides total ad-attributed revenue by total ad spend to produce a ROAS ratio. Also calculates profit per dollar of spend and shows the break-even point at 1x. ROAS is a revenue metric, not a profit metric — it doesn't account for COGS, overhead, or other costs.
Limitations
ROAS measures revenue, not profit. A 5x ROAS on a product with 20% margin is very different from 5x ROAS on an 80% margin product. Attribution accuracy depends on your tracking setup. Does not account for organic lift, brand awareness, or lifetime value of acquired customers.
CPC Calculator
CPC = Total Ad Spend / Total Clicks
Assumptions
Divides total ad spend by total clicks to produce average cost per click. Also computes clicks per dollar as a reciprocal metric. Actual CPC varies by auction, quality score, and competition — this calculates your realized average.
Limitations
Averages can mislead — a single high-CPC keyword can inflate the average. Does not account for click quality or conversion rates. A low CPC with zero conversions costs more than a high CPC with strong conversions. Use with ROAS and conversion rate for a complete view.
CPM Calculator
CPM = Total Spend / (Total Impressions / 1,000); Cost per impression = Total Spend / Total Impressions
Assumptions
Divides total ad spend by impressions in thousands to produce CPM. Also computes the per-impression cost. CPM is the standard metric for brand awareness and display advertising campaigns where clicks aren't the primary goal.
Limitations
CPM doesn't measure engagement, clicks, or conversions — it only measures reach. A low CPM with poor targeting wastes budget. Best used for awareness campaigns; for performance campaigns, use CPC and ROAS instead.
AOV Calculator
AOV = Total Revenue / Number of Orders; Revenue Impact +X% = (AOV × (1 + X%)) × Orders - Total Revenue
Assumptions
Divides total revenue by number of orders to produce average order value. Also projects the revenue impact of 5% and 10% AOV improvements to illustrate how small increases compound over order volume. AOV is the foundational metric for upselling and cross-selling strategies.
Limitations
Averages can be skewed by outliers — a few large B2B orders can inflate a primarily B2C AOV. Does not distinguish between new and returning customer AOV, which often differ significantly. Median AOV may be more representative than mean for businesses with wide price ranges.
General principles
- No external data: All calculations use only the values you enter. We do not pull market data, tax rates, or industry benchmarks.
- Rounding: Results are rounded to two decimal places. Break-even units are rounded up to the next whole unit.
- Planning estimates only: These tools are for quick planning checks. Always verify with actual accounting records before making financial decisions.
- No data storage: Calculations happen in your browser. We do not save, transmit, or store your inputs.