// free tools · quarterly tax set-aside calculator
Quarterly tax set-aside calculator
Work out how much to put aside for tax each month, quarter and payment, at a set-aside rate you choose. An estimate to help you save, not a tax calculation.
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How to use it
- Pick whether your numbers are for a month, a quarter or a year.
- Enter the income you received and your business expenses for that period.
- Enter the set-aside rate you've chosen. This page doesn't choose it for you.
- Optionally enter a payment you just received, and what you've already put aside this quarter.
Everything runs in your browser. Nothing you type into the calculator is sent or saved anywhere.
How the set-aside is worked out, with an example
When nobody takes tax out of your pay, it's easy to spend money that you'll need later. A simple habit is to move a fixed share of every payment into a separate savings account as soon as it arrives. This calculator turns a set-aside rate that you choose into amounts you can act on: per month, per quarter, per year and per payment. It doesn't calculate tax. The rate is yours, and so is the decision about what's actually owed.
Here's what it does with your numbers:
- Profit for the period = income received − business expenses. If expenses are higher, profit is treated as $0.
- Set-aside for the period = profit × your set-aside rate.
- It then scales that to a month, a quarter and a year, assuming the rest of the year looks like the period you entered.
- Share of every payment = set-aside ÷ income. Move that percentage from each payment as it comes in.
Worked example
A freelancer had $18,000 of income and $3,000 of business expenses this quarter, and has chosen to set aside 25% of profit.
| Income this quarter | $18,000.00 |
| − Business expenses | $3,000.00 |
| Profit this quarter | $15,000.00 |
| × Set-aside rate you chose | 25% |
| Set aside this quarter | $3,750.00 |
| Per month | $1,250.00 |
| Per year at this pace | $15,000.00 |
$3,750 is 20.83% of the $18,000 that came in, so when a $2,400 payment lands, $500 of it goes into tax savings and $1,900 is left to use. If $1,000 is already put aside this quarter, there's $2,750 still to go to reach this quarter's amount.
Making it a habit
Run the numbers once a month, or whenever your income changes a lot. If a big client pays late, the per-payment percentage still works because it follows the money as it arrives. If your profit changes, the amounts change with it. Keep the savings separate from your spending account so the money is there when it's needed.
If your income is uneven, entering a whole year's figures smooths out busy and quiet months, while a single month gives a quicker check on how you're doing right now. Either way, the per-payment percentage is the number to act on day to day: it's one figure you can apply to every invoice that gets paid.
Remember what this isn't: it isn't a tax return, a tax estimate or advice about what you owe. Tax depends on where you live, your deductions and credits, other income and the current rules. Use the result as a savings target, and check with a tax professional before you rely on it.
// want this in a spreadsheet?
See your year's profit and set-aside in one place.
The Freelancer Money Dashboard ($19) logs income and expenses, tracks who owes you, and shows your year's profit, margin and tax set-aside at the rate you choose, on one dashboard. Google Sheets and Excel. See what’s inside.
Not tax advice. Check with a professional. This calculator multiplies your profit by a rate you choose. It doesn’t work out what you owe and makes no claim about it. Tax rules depend on where you live and your whole situation.
Questions
Does this tell me how much tax I owe?
No. It multiplies your profit by a set-aside rate that you choose and shows how much that is per month, per quarter and per payment. It doesn't know your tax rules, deductions, credits or other income, so it can't work out a tax bill. It's an estimate to help you save, not tax advice: check with a tax professional.
What set-aside rate should I use?
That depends on where you live and your whole situation, so this page doesn't suggest one. A tax professional can help you choose a rate. Many people also look at what share of their profit went to tax last year, then adjust once they know more.
Why is the set-aside worked out from profit, not income?
Tax for the self-employed is usually based on profit (income minus allowable business expenses), not on everything that comes in. Setting aside a share of profit keeps your savings in step with that. Which expenses count is a question for a tax professional.
What does “share of every payment” mean?
It's the set-aside as a percentage of income, so you can move money straight from each payment as it arrives. At a 25% rate with $15,000 profit on $18,000 of income, that's 20.83% of each payment.
When are quarterly estimated payments due?
It depends on your country and tax authority, and dates can move when they fall on a weekend or holiday. In the US the IRS publishes the current year's estimated tax due dates. This calculator doesn't track deadlines.
What if my expenses are higher than my income?
Then there's no profit in that period, and the calculator shows $0 to set aside at your rate. Losses can still matter for your taxes, so keep good records.
Is anything I type saved?
No. The calculator runs in your browser and nothing you type into it is sent or stored.
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