The Side Hustle Calculator is a comprehensive financial tool designed to help you understand the true earning potential of your side business and how it can accelerate your journey to financial independence. Unlike simple income calculators, this tool provides a complete picture by factoring in business expenses, federal and state taxes, self-employment taxes, and most importantly, the long-term wealth-building potential of investing your side hustle profits.
How It Works:
Simply input your side hustle income (monthly or yearly), business expenses, main job salary, and your state’s tax rate. The calculator then determines your net income after all taxes and expenses, showing you exactly how much money you’ll actually take home. But here’s where it gets powerful – it also projects how that net income could grow over time when invested at your chosen rate of return. Whether you’re earning $500 a month from freelancing or $2,000 from an online business, you’ll see detailed tax breakdowns, take-home percentages, and investment growth scenarios for 5, 10, and 20+ year periods. This helps you make informed decisions about whether your side hustle is truly profitable and how it fits into your overall FIRE strategy.
Side Hustle Tax & Investment Strategy
Tax Considerations: Side hustle income is subject to federal income tax, state tax (if applicable), and self-employment tax (15.3% for Social Security and Medicare).
Investment Strategy: Investing your net side hustle income can significantly accelerate your path to financial independence through compound growth over time.
Pro Tip: Consider maxing out tax-advantaged accounts (401k, IRA, HSA) with your side hustle income to reduce your tax burden while building wealth.