How to use this calculator
- Enter the values from your current project or work period.
- Use realistic costs and time, including unpaid or nonbillable work.
- Select Calculate to update every result.
- Change one assumption at a time to compare scenarios.
#2598 · Salary & HR Tool
Freelance Rush Fee Tax Reserve Calculator
Separate the tax reserve tied to the rush premium from the reserve on the ordinary project fee. Enter the base fee, rush percentage, deductible rush costs, and estimated effective tax rate. The calculator shows the total reserve, the portion attributable to premium profit, and the cash remaining after costs and reserve. This is a cash-planning estimate, not individualized tax advice.
Calculator
Rush invoice reserveFormula
Invoice = base fee + rush premium. Taxable estimate = invoice − rush costs. Reserve = taxable estimate × effective tax rate.
What the result means
Use the main result as a planning threshold under the assumptions entered. Secondary results explain the time, rate, revenue, or cost components behind that threshold.
Estimates are for planning only. Contract terms, local tax rules, actual expenses, and working conditions may produce different results.
Example calculation
A $2,000 base fee plus a 25% premium creates a $2,500 invoice. After $150 of rush costs, the taxable estimate is $2,350 and a 28% reserve is $658.
Tips for better results
- Use recent records instead of ideal estimates.
- Keep billable time separate from total time worked.
- Include project-specific costs before evaluating the result.
- Run a conservative scenario for uncertain workload or demand.
- Recalculate whenever scope, deadlines, fees, or expenses change.
Frequently asked questions
What amount is the reserve based on?
The base fee and rush premium are added, then rush costs are deducted before the reserve rate is applied.
How is premium-related reserve estimated?
Rush costs are allocated to premium revenue first, and the reserve is applied only to any premium profit left.
What does available cash mean?
It is invoice profit remaining after rush costs and the selected tax reserve.
Can rush costs exceed the invoice?
No. This calculator blocks that combination because it would create a loss.
Is the reserve rate an official tax rate?
No. It is a planning assumption and does not replace tax advice.
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Inputs used in this estimate
| Input | Meaning |
|---|---|
| Base project fee | Measured in $ |
| Rush premium | Measured in % |
| Deductible rush costs | Measured in $ |
| Estimated effective tax rate | Measured in % |