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Calculate your take-home pay as a self-employed individual

SOLVEDby QuickBooksUpdated July 06, 2023

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 - Sales Taxes

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:
Interest expense-$1,500
Sales Taxes-$1,000
Net profit =$45,000

Learn more about common accounting terms you’re not familiar with or find related articles and resources.

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