Home/Calculators/S Corp Savings Calculator
    Tax ยท Free tool

    S Corp Savings Calculator

    See how electing S Corp status and paying yourself a reasonable salary could cut self-employment tax.

    Tax forms, calculator, and dollar bills illustration
    100% free, no signup
    Aligned with IRS guidance
    Instant results in-browser
    Reviewed by real accountants
    The Calculator

    Run the numbers

    $
    $
    $
    SE tax as sole prop / LLC 6,955.46
    FICA as S Corp on salary$9,180.00
    S Corp admin cost$2,500.00
    Estimated annual savings$5,275.46

    How it works

    As a sole proprietor or single-member LLC, all net profit is subject to 15.3% self-employment tax. Elect S Corp status and only your W-2 salary owes payroll tax, the remainder passes through as distributions, taxed at income rates only.

    The IRS requires a "reasonable salary" for the work you perform. Underpaying triggers audit risk; overpaying erases the savings. Most owners electing S Corp save money once profit exceeds $50k to $80k.

    Examples

    20k profit, $60k salary

    SE tax as LLC ~ 7k; S Corp FICA ~ $9.2k. Net savings ~ $5k after admin.

    $300k profit, 20k salary

    SE savings often exceed 2k/year net of costs.

    Frequently asked questions

    Talk to an accountant about your numbers

    Get a personalized review of your s corp savings calculator results, no cost, no obligation.

    More free calculators

    Estimated Tax Calculator
    Project quarterly federal tax on self-employment and business income.
    Payroll Calculator
    Calculate gross-to-net pay with federal, FICA, and state withholding.
    Sales Tax Calculator
    Add or reverse-calculate state and local sales tax on any total.
    Profit Margin Calculator
    Instantly compute gross, operating, and net profit margins.
    Break-even Calculator
    Find the sales volume that covers your fixed and variable costs.
    Related resources: Deduction library, , Business formation, Business growth.

    We use cookies to enhance your experience. View our Privacy Policy