Free Tool

S-Corp Savings Calculator

Enter your business profit and a reasonable salary. This shows the self-employment and payroll tax you would pay as a sole proprietor or single-member LLC versus an S-Corp, using 2026 figures. The savings come from the profit you take as a distribution, which is not hit by the 15.3% self-employment tax.

Your numbers
Profit is what is left after business expenses, before paying yourself.
$
$

Salary must be "reasonable" for your role under IRS scrutiny. Too low is the #1 audit flag for S-Corps. A rough sanity range is 35% to 50% of profit for many service businesses, but it depends on your work.

$
Estimated net annual savings
$0
Enter your numbers to see the comparison.
Sole prop / LLC — self-employment tax$0
S-Corp — payroll tax on salary$0
Payroll tax saved$0
Less S-Corp running cost$0
Net savings in your pocket$0

This compares payroll and self-employment tax only, the core of the S-Corp benefit. It does not model income tax, the QBI deduction under §199A, or state tax, which can shift the number. The S-Corp also has to make sense operationally. Want the full picture for your situation? Book a call.

%Effective Tax Rate EstimatorSee your full federal plus SE tax picture for 2026. QQuarterly Tax PlannerSafe-harbor payments so you skip the penalty.

Numbers look interesting?
Let's make it real.

An S-Corp election is one form, but reasonable comp, payroll setup, and the QBI angle are where it goes right or wrong. I set it up clean.

Book a Free Strategy Call
30 MIN · FREE · NO PITCH

Educational estimate only, not tax advice. Uses 2026 figures: Social Security wage base $184,500, SE tax 15.3% (12.4% Social Security + 2.9% Medicare), net SE earnings factor 92.35%. Does not include the additional 0.9% Medicare surtax, income tax, QBI, or state tax. Your actual savings depend on your facts.