Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Net annual savings
$6,415
Verdict
S-corp likely saves money
SE tax avoided
$8,415
Distribution portion
$55,000
Break-even profit
$78,072
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One click, a permanent link with your numbers baked in.
How to use this
- 1Enter net business profit ($).
- 2Enter reasonable salary ($).
- 3Enter payroll + extra accounting cost ($/yr).
- 4Read your net annual savings on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
As a sole-prop LLC you pay 15.3% self-employment tax on all profit. An S-corp splits profit into salary (taxed) and distributions (not) — but you take on payroll costs.
Worked example
Using the values the calculator loads with:
Inputs
- Net business profit: 120000 $
- Reasonable salary: 65000 $
- Payroll + extra accounting cost: 2000 $/yr
Results
- Net annual savings: $6,415
- Verdict: S-corp likely saves money
- SE tax avoided: $8,415
- Distribution portion: $55,000
- Break-even profit: $78,072
What each field means
Inputs
- Net business profit ($)
- The net business profit used in the calculation, measured in $. Starts at 120000 $ so you have a working example on load.
- Reasonable salary ($)
- The reasonable salary used in the calculation, measured in $. Starts at 65000 $ so you have a working example on load.
- Payroll + extra accounting cost ($/yr)
- The payroll + extra accounting cost used in the calculation, measured in $/yr. Starts at 2000 $/yr so you have a working example on load.
Results
- Net annual savings
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Verdict
- Returned as a plain value. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- SE tax avoided
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Distribution portion
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Break-even profit
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the llc vs s-corp calculator work?
As a sole-prop LLC you pay 15.3% self-employment tax on all profit. An S-corp splits profit into salary (taxed) and distributions (not) — but you take on payroll costs. The underlying maths is: Savings = (profit − salary) × 15.3% − payroll/admin cost
What do I need to enter?
3 values: net business profit, reasonable salary, and payroll + extra accounting cost. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the net annual savings result mean?
It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). LLC vs S-Corp Tax Savings Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/llc-vs-scorp
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/llc-vs-scorp" target="_blank" rel="noopener">LLC vs S-Corp Tax Savings Calculator — RevenueLab</a> (2026).</p>
Source: [LLC vs S-Corp Tax Savings Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/llc-vs-scorp) (2026).