S-Corp Break-Even Calculator

S-Corp Break-Even

Public calculator for sole prop vs. S-Corp tax comparison with salary range guidance, state tax inputs, sharing, and PDF export.

Inputs

Assumptions: 2026 Social Security wage base of $184,500, 15.3% SE/FICA rate split simplified for screening, and a 40%-60% reasonable salary band.

Payroll, separate return prep, bookkeeping, state fees.
Leave blank to use the midpoint of the 40%-60% band.

Break-even snapshot

Fill in your numbers to compare federal payroll/self-employment tax effects, state tax impact, and S-Corp compliance drag.

Net profit
$0
Recommended salary
$0
Annual savings
$0
Break-even salary
$0

Sole proprietor

S-Corp

Reasonable salary band

40%-60% rule

This is a planning heuristic, not legal advice. The IRS facts-and-circumstances standard can support values outside this band.

Method and assumptions