How the Freelancer Tax Set-Aside Calculator Works
The calculator subtracts business expenses from gross revenue, applies the chosen reserve percentage to the resulting profit, and compares the target reserve with the amount already saved.
Formula and method
Estimated profit = gross revenue − business expenses. Target reserve = estimated profit × reserve percentage. Additional amount to set aside = max(target reserve − amount already reserved, 0).
Practical tips
Use a consistent accounting period and keep business and personal money separate. Review your reserve percentage as your revenue mix and local obligations change.
Important limitations
This is not a tax return or tax calculation. Deductible expenses, estimated payments, self-employment contributions, VAT/GST, credits, brackets, and filing requirements depend on local rules.