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

by Intuit Updated 5 months ago

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 - VAT

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
VAT-£1,000
Net profit =£45,000

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