The LLC Profitability Calculator helps users estimate their LLC’s break-even point and monthly profits by inputting startup costs

(filing fees, legal setup, equipment, marketing), monthly revenue, and operating expenses (rent, subscriptions, ads, miscellaneous).

 It calculates how many months it takes to recover initial costs and projects monthly profitability.

It provides an accurate estimate of annual tax savings based on LLC-specific deductions,

including Home Office Deduction (up to $1,500), Self-Employment Tax Savings (7.65% of net profit), and Equipment Write-offs (80% of equipment costs, capped per IRS limits). 

This helps users understand the tax benefits of an LLC’s pass-through structure.

After calculations, users receive a detailed summary with their break-even point, monthly profit, tax savings, and expert recommendations for forming an LLC.

 They can download results as a PDF and explore the top LLC formation services

(Bizee, ZenBusiness, 1st Formations) With links to learn more and read reviews.

1. Home Office Deduction:

Using the “Workspace or Home Office Rent” input, the deduction is estimated as 20% of the annual rent cost (assuming 20% of the home is used for business), capped at $1,500 per the IRS simplified method ($5 per square foot, up to 300 sq ft).

2. Self-Employment Tax Savings:

LLC owners pay a 15.3% self-employment tax on net earnings (monthly revenue minus expenses, annualised). The employer portion (7.65%) is deductible.

 This is calculated as 7.65% of the annual net profit (monthly profit × 12).

3. Write-offs for Equipment & Supplies:

Using the “Tools/Software/Equipment” input, 80% of the cost is deducted to account for IRS Section 179 limits and depreciation rules, capped at $1,160,000 for 2025.