Free S-corp planning tool
S-Corp Salary & Distribution Calculator
Plan how to split your S-corp owner pay between W-2 salary and distributions, and see a simple tax reserve recommendation — broken down monthly or quarterly.
Planning tool only — not tax filing, payroll, or legal advice.
Your numbers
Enter rough planning figures. You can adjust anytime — nothing is saved.
Estimated S-corp net profit before owner comp. Used to check whether your plan fits.
What you pay yourself today. Used as a comparison point — not in the tax math.
The salary you're considering. Drives payroll tax and the salary share of owner pay.
Owner distributions you plan to take from profits.
A simple reserve % of total owner pay. Many S-corp owners use 20–30% as a starting point.
Your planning breakdown
Quarterly viewPlan status: Looks workable
Your planned owner pay and reserve fit inside your annual business profit with cash left in the business.
Salary change vs. today
Current
$70,000
Target
$85,000
Difference
+$15,000(+21%)
Salary per quarter
$21,250
Distributions per quarter
$15,000
Recommended annual reserve
$31,900
Reserve to set aside / quarter
$7,975
Estimated employer payroll tax (annual)
$6,503
Total business outflow (annual)
$151,503
Remaining after owner pay
$68,498
Annual profit minus salary, distributions, and employer payroll tax.
Remaining after reserve
$36,598
What's left in the business once reserve is also set aside.
What this means
You're planning $145,000 in total owner pay — $85,000 as W-2 salary (58.6%) and $60,000 as distributions (41.4%). At a 22% reserve, that's $31,900 set aside for the year, or about $7,975 every quarter. After owner pay and reserve, roughly $36,598 would remain in the business based on your profit estimate. These are planning estimates only.
How we calculated this
- Owner pay = target salary + planned distributions
- Employer payroll tax ≈ 6.2% Social Security on salary up to the wage base + 1.45% Medicare on all salary
- Reserve = 22% × total owner pay
- Remaining in business = annual profit − owner pay − employer payroll tax − reserve
- Quarterly view divides annual figures by 4. It's a timing view, not a separate tax calculation.
Pro feature
Reserve Planning
Pro adds a structured reserve funding plan based on your scenario: annual target, monthly and quarterly contributions, and a clear schedule of cumulative checkpoints to pace cash aside through the year.
Pro feature
Yearly roadmap
Pro adds a simple year-at-a-glance pacing plan with quarterly checkpoints for salary, distributions, and reserve targets.
Pro feature
Quarterly planning checkpoints
Pro adds a simple quarter-by-quarter planning checklist to review reserve pacing and owner-pay planning through the year.
Methodology & assumptions
We keep the math simple and visible so you can trust what you're seeing.
- Owner pay split: total owner pay = target W-2 salary + planned distributions. The chart shows each as a share of the total.
- Current vs. target salary: current salary is shown only for comparison — it does not change the tax estimate. The payroll tax estimate is calculated from the target salary.
- Employer payroll tax estimate (simplified, generic rates): ~6.2% Social Security on W-2 salary up to a wage base of about $168,600, plus ~1.45% Medicare on all W-2 salary. We use rounded, generic rates rather than a specific tax year so the tool stays a planning estimate, not a payroll calculation.
- Tax reserve: a flat percentage you choose, applied to total owner pay (salary + distributions). It's a planning cushion for federal income tax on owner pay — not a precise tax bill, and it does not model state tax, deductions, or credits.
- Remaining in the business: annual profit − salary − distributions − employer payroll tax − reserve. Plan status (workable / tight / over budget) is based on this number.
- Periods: monthly = annual ÷ 12, quarterly = annual ÷ 4. This is a timing view to help with cash planning, not a separate tax calculation, and it doesn't model seasonality.
- What this is not: a determination of reasonable compensation, a state tax engine, a payroll system, or tax/legal advice. Confirm decisions with a qualified CPA or tax professional before acting on them.
Take it further
Save scenarios and stay organized
The calculator is free to use forever. The paid planner adds saved scenarios, side-by-side comparisons, a quarterly reserve plan, S-corp deadline tracking, and exports.
- Save this scenario
- Compare another scenario side-by-side
- Build a quarterly reserve plan
- Track S-corp deadlines in one place
- Export scenarios as PDF or CSV
How to use the S-corp owner pay calculator
If you run a U.S. S-corp as a solo consultant or agency owner, two of the biggest planning questions every year are: how much should I pay myself as W-2 salary, and how much should I take as distributions? This free salary vs. distribution calculator helps you think through that split with real numbers instead of guesswork.
Start with your annual business profit, then enter a target salary, planned distributions, and a tax reserve percentage. The calculator instantly shows the split between salary and distributions, an employer-side payroll tax estimate, and how much to set aside each month or quarter to stay ahead of federal taxes on your owner pay.
Many solo S-corp owners use this kind of S-corp owner pay calculator to pressure-test a few salary scenarios before talking with their CPA. There is no single "right" number — reasonable compensation depends on your role, industry, hours, and market — but seeing the trade-offs in one view makes the conversation much easier.
Calculator FAQ
Questions about this calculator
The calculator estimates how your owner pay splits between W-2 salary and distributions, an employer-side payroll tax estimate on the salary portion, and a recommended tax reserve based on the percentage you choose. It does not calculate full federal income tax owed, state tax, or personal deductions.