Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Calculate your net profit and tax set aside after expenses on a freelance project.
This tool calculates your profit on a freelance project after subtracting expenses (software, subcontractors, tools) from the project price, then applies the tax rate you enter to show the tax to set aside and your net profit. If expenses exceed the price, the pre-tax profit is treated as 0 rather than negative. There is no hours field, so it does not calculate an effective hourly rate.
Enter the project price, your expenses, and your tax rate on income. Your net profit and the tax amount appear instantly.
The tool takes three inputs: the project price, the project expenses, and a tax rate on income as a percentage. It first subtracts expenses from the price to get profit before tax. If expenses exceed the price, that figure is held at zero rather than going negative. It then applies your tax percentage to the before-tax profit to get a tax amount, and the net profit is what remains after that. The results shown are the net profit and the tax amount. Note that the tool does not ask for hours and does not show an effective hourly rate; if you want that, divide the net profit or the before-tax profit by the hours you actually worked, on your own calculator.
Before-tax profit = price - expenses. Tax = before-tax profit x tax rate. Net profit = before-tax profit - tax.
Take hypothetical numbers: a project paid 1,000 dollars, you spent 200 on a subcontractor and software, and you set aside 15 percent for tax. Before-tax profit is 800. Tax at 15 percent is 120, so net profit is 680. Now suppose you worked 25 hours on it. Dividing 680 by 25 gives about 27.20 dollars per hour, which may be far below the rate you thought you were charging. Doing this arithmetic after every job shows which kinds of client work are worth taking again.
The tax field is a single flat percentage that you choose. It is a planning placeholder, not a tax calculation. Real self-employment taxes often involve several parts, such as income tax brackets, self-employment or social-insurance contributions, deductions, and estimated quarterly payments, and the rules differ by country and by region. Do not assume a flat rate is accurate for your situation. Look at your national tax agency, such as IRS.gov in the United States, or ask a qualified accountant what share of income you should reserve. If you are unsure, entering a conservative rate helps you avoid a surprise at tax time, and entering 0 shows you profit before tax.
Compare net profit across projects, not just gross revenue. A 5,000 dollar project with 3,500 in costs may be less attractive than a 2,000 dollar project with 200 in costs. Use these comparisons to decide when to raise your rates, when to charge separately for expenses, and which clients to prioritize. The Freelance Project Price Calculator on this site works in the other direction: it helps you set a quote from hours, rate, and expenses before you begin. Keep records of each job so that your estimates improve over time, and consult a professional for anything that affects your tax filings.
No -- the tool has no hours input, so it reports only net profit and the tax set aside. To get an hourly figure, divide the net profit by the hours you actually worked.
No. It shows net profit and tax amount only. To find an hourly figure, divide the profit by the hours you actually worked.
No. It applies the flat percentage you type to before-tax profit. Actual tax depends on your jurisdiction, deductions, and total income, so confirm with an official source or an accountant.
The before-tax profit is held at zero, so the tool shows zero profit and zero tax rather than a negative loss figure.
No. Profit is the amount that pays for your time, so subtracting your labor would double-count it.
Reference: Google Search Central