Learn how to calculate your take-home pay or net profit as a self-employed individual.
Your take-home pay or net profit is the money that remains after subtracting all your expenses, benefits, and taxes. Use the following formula to calculate how much you’ve earned so you can make better business decisions using that info.
Take-home pay formula
Take-home pay = Total self-employment revenue - Cost of Goods Sold - Expenses - Interests - GST
Use this example as a guide for calculating your net income
| Total self-employment revenue | $100,000 |
| Total Cost of Goods Sold | -$40,000 |
| Operating expenses: | |
| Rent | -$10,000 |
| Utilities | -$2,500 |
| Interest expense | -$1,500 |
| GST | -$1,000 |
| Net profit = | $45,000 |
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