Self-employed individuals must pay estimated taxes quarterly to avoid underpayment penalties.
What this calculator does
Quarterly payments are due: April 15, June 15, September 15, and January 15 (next year).
When to use this calculator
Use this calculator before making any financial commitment that depends on this type of calculation. Running the numbers in advance lets you evaluate options without the pressure of a live negotiation or decision deadline.
Common mistakes
The most consequential mistake is comparing financial figures that are not on the same basis — gross versus net, before-tax versus after-tax, or nominal versus inflation-adjusted. Always check whether figures you are comparing use the same definition.
Real-world scenarios
A small business owner compares two financing options for new equipment: a 5-year bank loan at 5.2% versus a leasing arrangement with a monthly fee. The calculator translates both into a total cost figure, making the comparison straightforward.
Frequently asked questions
When are quarterly taxes due?
April 15, June 15, September 15, and January 15 of the following year.