Creator take-home calculator

Why the number surprises people

Most creators know the platform takes roughly a fifth. Fewer have added that to an agency commission, and fewer still have then subtracted tax — which for self-employed income means both halves of Social Security and Medicare on top of income tax.

Stack them and the arithmetic is brutal: 20% to the platform and 40% to an agency leaves 40% before you have paid a penny of tax. Take tax off that and a creator grossing $10,000 a month is often keeping closer to $3,000 than the $6,000 she assumed.

What this calculator does differently

It applies the cuts in the right order and then runs a real self-employment tax estimate on what is left — including the deduction for half your SE tax and the 20% qualified business income deduction, both of which crude calculators ignore and both of which work in your favour.

What it can't know

• Your state or country's own income tax
• Other income that pushes you into a higher bracket
• Chargebacks, which quietly reduce the top line — there's a calculator for that
• Whether your agency's commission applies to gross or to net, which can differ by thousands a year

What to do with the number

Two things. Set aside the tax figure from every payout rather than at year end, and compare the agency line against what they actually deliver. If your income would be similar without them, that line is the most expensive item in your business.