Home Business Pricing Calculator

This calculator uses data from the Bureau of Labor Statistics Occupational Employment and Wage Statistics (OEWS) survey, released May 2024. The BLS surveys over 1.1 million businesses to produce wage estimates for approximately 830 occupations across all 50 states and DC.

Why the self-employed premium? BLS data reflects wages for W-2 employees working in salons, shops, offices, and other establishments. Self-employed home-based operators typically charge 20-40% more because they set their own rates, don't pay chair/booth rent, and offer personalized service. The default 30% premium is a conservative middle estimate.

Overhead estimate: Home-based businesses have lower overhead than traditional locations — no commercial rent, lower utilities, and home office deductions. We estimate ~20% for supplies, insurance, marketing, and miscellaneous costs. Your actual overhead will vary.

Self-employment tax: As a self-employed individual, you pay both the employer and employee portions of Social Security and Medicare taxes — a combined 15.3% on net self-employment income. This is in addition to your regular income tax.