Schedule C Profit and Loss Calculator
Work out your Schedule C net profit or loss, then see the self-employment tax, QBI deduction, and estimated 2026 federal income tax it triggers.
Schedule C Profit and Loss Calculator
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Leave at 0 to estimate tax on this business alone. Add W-2 or spouse income to land the estimate in the right bracket.
Income tax is an estimate. It assumes the standard deduction and that this business is your only income unless you enter other taxable income. It excludes state tax, credits, retirement contributions, and self-employed health insurance. These are estimates only, not tax or legal advice.
Get Your Full Tax Estimate
This calculator covers one Schedule C business. Tax47 pulls in credits, multiple income sources, and your full federal refund picture.
How Schedule C calculates your net profit or loss
Schedule C is the profit and loss statement that sole proprietors and single-member LLCs file with Form 1040. Part I builds your gross profit: start with gross receipts (line 1), subtract returns and allowances (line 2), then subtract cost of goods sold (line 4). Add any other business income (line 6) to reach gross income on line 7.
Part II is where expenses come off. Total your business expenses on line 28, then subtract them along with the home office deduction (line 30). The result on line 31 is your net profit or net loss. If receipts beat expenses you have a profit; if expenses win you have a loss.
A quick example: a freelancer with $80,000 in receipts, no cost of goods sold, and $20,000 in expenses has $80,000 gross profit, $80,000 gross income, and $60,000 net profit on line 31. That $60,000 is the number every downstream tax flows from.
What your Schedule C profit costs in taxes
Net profit on line 31 is not the same as the amount you take home. First comes self-employment tax. Schedule SE multiplies net profit by 0.9235 (the 92.35% factor that mirrors the employer-side FICA an employee never pays tax on), then applies 12.4% Social Security up to the 2026 wage base of $184,500 and 2.9% Medicare with no cap, for a combined 15.3%.
You then deduct half of that self-employment tax as an above-the-line adjustment, which lowers both your adjusted gross income and the income used for the QBI deduction. The qualified business income deduction is up to 20% of net profit minus that deductible half, and it is also capped at 20% of your taxable income before the deduction. In the $60,000 example, line 31 drives roughly $8,478 of self-employment tax, about $4,239 deductible, and a QBI deduction in the low five figures before income tax is figured.
2026 changes under the One Big Beautiful Bill (P.L. 119-21)
The One Big Beautiful Bill Act raised the standard deduction for 2026 to $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household). A larger standard deduction shrinks taxable income, which can also lower the 20%-of-taxable-income ceiling on the QBI deduction.
The bill also made the 20% QBI deduction permanent and added a new minimum: if your qualified business income is at least $1,000 and you materially participate, your deduction is at least $400. The 2026 taxable-income thresholds for the simple full-deduction case are $203,000 (single or head of household) and $406,000 (married filing jointly); above those, W-2 wage and specified-service limits apply that this calculator does not model.
Schedule C net profit vs. taxable income
It helps to keep two numbers separate. Self-employment tax is figured on net profit (after the 0.9235 factor). Federal income tax is figured on a smaller number: net profit plus any other taxable income, minus the deductible half of self-employment tax, minus the QBI deduction, minus the standard deduction. That is why the income-tax line here is labeled an estimate.
Because this tool assumes the standard deduction and a single business, it is a planning estimate, not a filed return. For a complete federal picture with credits and multiple income sources, download Tax47. To go deeper on each piece, try the Self-Employment Tax Calculator, the QBI Deduction Calculator, the Estimated Quarterly Tax Calculator, and the Tax Refund Estimator. These figures are estimates only and not tax or legal advice.
Frequently Asked Questions
Common questions about schedule c profit and loss calculator
What is a Schedule C profit and loss statement?
Schedule C (Form 1040) is your business profit and loss statement for tax purposes. You list income at the top, subtract returns, cost of goods sold, and operating expenses, and the result on line 31 is your net profit or loss. That line carries over to your Form 1040 and to Schedule SE for self-employment tax.
How do I calculate net profit on Schedule C?
Start with gross receipts (line 1), subtract returns and allowances (line 2) and cost of goods sold (line 4) to get gross profit. Add any other business income for gross income (line 7). Then subtract total business expenses (line 28) and the home office deduction (line 30). What is left is net profit or loss on line 31.
How much self-employment tax will I owe on my Schedule C profit?
Self-employment tax is 15.3% on 92.35% of your net profit: 12.4% Social Security up to the 2026 wage base of $184,500, plus 2.9% Medicare with no cap. High earners add 0.9% Medicare above $200,000 (single or head of household) or $250,000 (married filing jointly). The Tax47 self-employment tax calculator at /tools/self-employment-tax-calculator/ breaks it down further.
Why is my self-employment income multiplied by 0.9235?
The 92.35% factor accounts for the employer-side share of FICA that an employee never pays tax on. Because the self-employed pay both halves, the law lets you reduce net profit by 7.65% before applying the 15.3% rate, so you are not taxed on the deductible employer portion.
Can I deduct half of my self-employment tax?
Yes. One half of your self-employment tax is an above-the-line adjustment that lowers your adjusted gross income. It also reduces the income used for the QBI deduction. This calculator subtracts the deductible half before estimating your federal income tax.
Do I get the 20% QBI deduction on my Schedule C income?
Usually yes, as long as your taxable income is under the 2026 threshold of $203,000 (single or head of household) or $406,000 (married filing jointly). Qualified business income equals net profit minus the deductible half of self-employment tax (a full return also subtracts self-employed retirement and health insurance). Under the One Big Beautiful Bill, a $400 minimum deduction applies when QBI is at least $1,000 and you materially participate. See /tools/qbi-deduction-calculator/.
What happens if my Schedule C shows a loss?
A net loss means no self-employment tax and no QBI deduction for that business. The loss can offset other taxable income on your return, which may lower your overall tax. This calculator shows the loss in red and sets self-employment tax and the QBI deduction to zero.
Do I still file Schedule C if I made less than $400?
Yes. You file Schedule C if you have any business income or expenses to report. The $400 figure is the point at which self-employment tax kicks in: once net self-employment earnings reach $400, you owe self-employment tax. Below that, you still report the income but owe no self-employment tax.