Side Hustle Calculator
Got a side gig? Calculate true earnings after taxes, expenses, and time investment. Is it worth it?
Scenario
Monthly Revenue & Profit
Monthly Net Profit Trend
Tax Breakdown (Annual)
How this Side Hustle Income Calculator works
This calculator projects your side business earnings by accounting for monthly revenue, business expenses, and the often-overlooked self-employment tax (15.3% for Social Security and Medicare). It calculates your federal income tax, state tax, total tax liability, and net profit after all taxes. Most importantly, it computes your effective hourly rate (your true take-home divided by hours worked) and estimates your quarterly tax payments (Form 1040-ES) so you avoid IRS penalties.
Why this matters for your wealth
Side hustles are booming in 2026 (freelancing, consulting, Uber, Upwork, Etsy, Amazon FBA), but new entrepreneurs often underestimate taxes. Unlike W-2 jobs where taxes are withheld, self-employed individuals must pay quarterly estimated taxes or face penalties. The 15.3% self-employment tax shocks many first-timers. This tool helps you budget realistically, price your services correctly, and decide if your side hustle is worth the time compared to a traditional job. It's essential for anyone earning 1099 income.
Frequently Asked Questions
What is self-employment tax and why is it so high?
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare). When you're an employee, your employer pays half of this. When you're self-employed, you pay both halves. However, you can deduct half of the SE tax from your income tax, which softens the blow slightly.
Do I need to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000+ in taxes. The IRS requires quarterly payments in April, June, September, and January using Form 1040-ES. Missing these can result in penalties, even if you pay the full amount at year-end.
What business expenses can I deduct?
Common deductions: home office (if dedicated space), internet, software subscriptions, equipment, mileage, client meals, advertising, and professional development. Keep receipts and track everything. Deductions reduce your taxable income, saving you money on both income tax and self-employment tax.
How do I compare my side hustle to a W-2 job?
Convert your side hustle net profit (after all taxes) to an hourly rate. Don't forget to account for lost W-2 benefits like health insurance, 401(k) match, and paid vacation. If your effective hourly rate is significantly higher and you enjoy the work, it may be worth scaling up to full-time.