About the Schedule C Profit Calculator
This Schedule C calculator follows the layout of IRS Schedule C (Form 1040), Profit or Loss From Business, to show what a sole proprietor or single-member LLC actually earns and owes for tax year 2026. Start with gross receipts, subtract returns and cost of goods sold to get gross profit, then subtract the main Part II expense lines to reach net profit — the number that drives both self-employment tax and income tax.
It is built for freelancers, gig workers, consultants and small shop owners who want a quick estimate before doing the real return or setting quarterly payments. Business meals are entered at full cost and automatically limited to 50%, and the home office deduction uses the IRS simplified method of $5 per square foot for up to 300 square feet, limited to your profit.
From net profit the calculator works out 2026 self-employment tax (15.3% on 92.35% of profit up to the $184,500 Social Security wage base), the deduction for half of it, the 20% qualified business income deduction, and the extra federal income tax your profit adds on top of any W-2 wages, using the 2026 brackets and standard deduction from IRS Rev. Proc. 2025-32. Depreciation, the regular home office method, credits and state taxes are not included.
With the default inputs, the net profit (line 31) is $93,000.00. Change any value above to recalculate instantly.
How to use the schedule c profit calculator
- 1Enter gross receipts, any returns and your cost of goods sold.
- 2Fill in your business expenses by category; enter meals at full cost.
- 3Add the square footage of your home office if you use one exclusively for work.
- 4Enter any W-2 wages so the Social Security cap and tax brackets are applied correctly.
- 5Review net profit, SE tax and income tax, and set aside the suggested share.
Formula and method
Gross profit (line 5) is receipts minus returns and cost of goods sold, and becomes gross income on line 7 when there is no other business income. Total expenses (line 28) add the Part II categories, with meals limited to 50%. The simplified home office deduction is $5 per square foot of exclusive business space up to 300 square feet and cannot exceed the tentative profit on line 29.
Self-employment tax is 12.4% Social Security (up to the $184,500 wage base, less any W-2 wages) plus 2.9% Medicare on 92.35% of net profit, plus 0.9% Additional Medicare above $200,000 ($250,000 joint). Half of the 15.3% portion is deducted from income. The QBI deduction is 20% of (profit − that deduction), limited to 20% of taxable income and phased out above the 2026 threshold as for a business without employees. Income tax shown is the tax on wages plus profit minus the tax on wages alone.
- COGS
- Cost of goods sold (Part III)
- Expenses
- Part II expense lines 8–27
- sq ft
- Area used regularly and exclusively for business
Worked examples
Freelance designer with $120,000 of sales
Gross profit is $120,000 − $10,000 = $110,000. Expenses total $16,000 (meals count at $500) and 200 sq ft of home office adds $1,000, so net profit is $93,000. SE tax on $85,885.50 of net earnings is $13,140.48. After the $6,570 half-SE deduction and the $16,100 standard deduction, taxable income before QBI is $70,330; the QBI deduction is capped at 20% of that ($14,066), leaving $56,264 taxable and income tax of about $7,090 — about 21.8% of profit in total.
Side business on top of a $70,000 job
Expenses of $3,500 leave a $26,500 profit. SE tax is 15.3% of $24,472.75 = $3,744.33. Because the salary already fills the lower brackets, the profit (less half of SE tax and a QBI deduction of about $4,926) is taxed mainly at 22%, adding about $4,335 of income tax.
Large home office capped by the simplified method
The simplified method allows at most 300 sq ft × $5 = $1,500, so a 400 sq ft office deducts $1,500 and net profit is $92,500. The regular method on Form 8829 may give a bigger deduction for a large space.
Frequently asked questions
Who has to file Schedule C?+
Sole proprietors, single-member LLCs taxed as disregarded entities and most independent contractors and gig workers report business income and expenses on Schedule C. You must file a return with Schedule SE once net earnings from self-employment reach $400.
What is the difference between gross profit and net profit on Schedule C?+
Gross profit (line 5, carried to line 7 as gross income) is sales minus returns and cost of goods sold. Net profit (line 31) subtracts all business expenses and the home office deduction from gross profit, and is the amount subject to self-employment tax and income tax.
How does the simplified home office deduction work?+
You deduct $5 for each square foot of space used regularly and exclusively for business, up to 300 square feet ($1,500). It cannot create a loss, and you do not deduct actual utilities or depreciation for that space.
Are business meals deductible in 2026?+
Generally 50% of the cost of business meals with clients, customers or while traveling for work is deductible, provided the expense is not lavish and you or an employee is present. Entertainment such as event tickets is not deductible.
How much should I set aside for taxes from Schedule C income?+
Many sole proprietors set aside 25%–30% of net profit for federal taxes: about 14% for self-employment tax plus their income tax bracket. This calculator shows your own percentage and a quarterly estimate.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.