Multi-Platform P&L Simulator

Methodology

How the P&L simulator works

1. 01

   Start with gross revenue across every platform

   Add as many revenue streams as you have. For ad-based platforms (YouTube, TikTok, podcast host-read), enter monthly views and the RPM/CPM you see. For fixed-recurring income (Patreon, Substack, merch), enter the monthly gross directly. The simulator stacks all streams and tracks them as one annual total.

2. 02

   Subtract the platform fee

   Each platform takes a different cut: YouTube 45%, Twitch 50%, TikTok 50% of Creator Rewards, Patreon ~8%, Substack ~10% plus payment processing. The simulator subtracts each platform’s share before anything else, producing “creator gross” — the number that actually appears on your 1099.

3. 03

   Subtract your business expenses

   Software subscriptions, gear, editor fees, home-office costs, subcontractors — all legitimate deductions before SE tax is calculated. Enter your monthly total; the simulator annualizes it and subtracts it from creator gross to get net business income.

4. 04

   Apply self-employment tax

   SE tax is 15.3% on 92.35% of net business income, with the Social Security portion capped at the 2025 wage base of $176,100. The additional 0.9% Medicare surtax kicks in above $200,000 single filer. Half of the SE tax is deductible against the federal income tax calculation, which the simulator handles automatically.

5. 05

   Apply federal income tax

   Uses the 2025 IRS brackets for your filing status (single, married-joint, head-of-household), with the standard deduction applied. The bracket math is progressive — you only pay the higher rate on the dollars above each threshold, not on your whole income.

6. 06

   Apply state income tax

   Entered as a flat rate (0% for Texas/Florida/etc., ~5% for typical states, up to 9.3% for the California top bracket). Applied to net business income minus the federal standard deduction as an approximation. For precise state math, use a state-specific tool.

7. 07

   The S-corp check

   Above ~$40,000 net income, the simulator estimates how much SE tax an S-corp election could save. The model assumes a reasonable salary of ~40% of net (capped at $80,000), with the remainder as distributions that escape SE tax. It flags whether the savings clear an estimated $2,500/year in incorporation costs. Not advice — talk to a CPA before electing.

FAQ

Frequently asked questions

How is self-employment tax actually calculated?

Self-employment tax is 15.3% of 92.35% of your net earnings — 12.4% goes to Social Security and 2.9% to Medicare. The Social Security portion is capped at the annual wage base ($176,100 for 2025), so once your net SE income crosses that threshold, only the 2.9% Medicare piece continues. An additional 0.9% Medicare surtax applies to income above $200,000 single / $250,000 joint. Half of your total SE tax is deductible before federal income tax is calculated, which the simulator accounts for.

Why is the platform cut so much bigger on YouTube than Patreon?

YouTube monetizes through ad inventory and runs the entire sales operation: they find advertisers, negotiate CPMs, handle brand-safety, and serve the ads. That warrants a 45% cut of gross ad revenue. Patreon and Substack are closer to pure payment rails — the creator brought the audience and does the fulfillment, so the platforms take 8–10% plus payment processing (~3%). It's a different kind of business arrangement, and the numbers reflect that.

When does an S-corp election actually pay off?

Rule of thumb: when your net creator income exceeds roughly $40,000/year and you're comfortable with the administrative overhead. An S-corp lets you split income between a 'reasonable salary' (subject to SE tax) and distributions (not subject to SE tax), which can meaningfully cut the SE tax bill. But you have to pay yourself through payroll, file a separate 1120-S return, maintain bookkeeping, and survive an IRS 'reasonable salary' test. The calculator's S-corp check is a threshold signal — talk to a CPA before actually filing the election.

Does the calculator include state income tax?

Yes, as a single flat rate you enter. The simulator applies that rate to your net income minus the federal standard deduction. This is a simplification — most states have their own brackets, their own deductions, and their own rules on SE income — but the flat-rate approximation is typically within a few percent of the actual state bill. For precise state math, export your numbers to a state-specific tax tool or a CPA.

What if I earn on platforms not in the dropdown?

Use the 'By monthly gross' override on any platform. Pick a platform with a similar revenue-share structure (Patreon for direct creator payments, YouTube for ad-based, podcast for host-read sponsorships), then enter your monthly gross directly. The platform fee will apply; the tax math afterward is identical regardless of the revenue source.

How accurate are these tax brackets?

The calculator uses the official 2025 IRS federal brackets and standard deductions. Tax brackets are adjusted annually for inflation; when the site updates (usually once per year, early in the new tax year), the brackets shift with them. The calculator models ordinary income only — it doesn't account for long-term capital gains, qualified dividends, retirement contributions, HSA contributions, or QBI deductions, any of which can meaningfully reduce the federal bill.