The S-Corp Savings Calculator

Could an S-Corp lower your self-employment taxes?

Drag the sliders to your numbers. Everything runs in your browser — nothing you enter is sent to us or anyone else.

Your yearly business profit $120,000

Net profit after expenses, before taxes — the bottom line on your Schedule C.

$25,000$500,000

Salary you'd pay yourself $48,000 (40%)

As an S-Corp owner you must take a defensible "reasonable salary" for the work you do. Many owners land between 35–50% of profit, but your number depends on your role and market rates.

25%75%

Added yearly costs of running an S-Corp $1,200

Payroll service, the extra corporate tax return, state fees. We start you at a typical figure — adjust to taste.

$0$5,000

Self-employment tax as a sole proprietor / LLC$0

Payroll taxes on your S-Corp salary$0

Payroll-tax difference$0

Minus added S-Corp costs−$1,200

Estimated yearly savings

an estimate — not a promise, and not advice

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How this estimate is calculated (and what it leaves out)

Sole proprietor: 15.3% self-employment tax on 92.35% of profit up to the Social Security wage base ($184,500 for 2026 — we update this annually), then 2.9% Medicare above it.
S-Corp: the same Social Security and Medicare taxes, but only on the salary you pay yourself — profit taken as distributions is not subject to them.
This is a simplified payroll-tax comparison only. It does not model the 0.9% additional Medicare surtax at higher incomes, the Qualified Business Income (QBI) deduction (which can shrink the benefit), the deduction for half of SE tax, state taxes and fees, or retirement-contribution effects.
A lower salary is not automatically allowed — the IRS requires reasonable compensation for the work you actually do.

This tool is for education only and is not tax, legal, or financial advice. Whether an S-Corp makes sense for you depends on your complete situation — that's exactly what a discovery call is for. West Financial Services LLC.