Estimate monthly child support payments using the income shares model. Enter both parents' incomes, custody arrangement, and child expenses.
Auto-updated · Verified daily against IRS, Fed & Treasury sources
Enter your numbers below
A Texas-based freelance graphic designer earns $140,000 net profit/year from client work. She's evaluating whether to stay as a sole proprietor, form an LLC, or elect S-Corp status to reduce self-employment taxes.
Takeaway: S-Corp saves $8,300/year but adds ~$1,500-$3,000 in accounting fees (payroll, extra returns). Break-even is around $80-90K net profit. Below that, the overhead eats the savings. Texas has no state income tax, so the benefit is purely federal SE savings.
LLC annual fees range from $0 (Ohio) to $800 minimum (California, even for zero-revenue LLCs). Delaware C-Corp is standard for VC-backed companies but adds registered agent costs (~$300/yr) for out-of-state entities. The "best" structure is state-specific.
S-Corps cannot have more than 100 shareholders, cannot have non-US shareholders, and cannot have corporate shareholders. Violating these rules (e.g., adding a foreign investor) terminates S-Corp status retroactively, potentially creating a large unexpected tax event.
The IRS requires S-Corp owner-employees to pay themselves a "reasonable salary" before taking distributions. There is no fixed formula — the IRS looks at industry benchmarks, duties, and hours worked. Setting the salary too low is a common audit trigger for S-Corps.
Business break-even models track revenue vs. direct costs. They rarely factor in the owner's time as a cost. If you're working 60 hours/week at imputed $50/hour, your "profitable" business may be paying you $12/hour after the opportunity cost calculation.
Break-Even CalculatorA service business valued on EBITDA multiples (2-4×) gets a very different number than one valued on SDE (seller's discretionary earnings) or discounted cash flow. Buyers and sellers typically use different methods to argue their preferred price. This calculator uses a single method.
Business Valuation CalculatorBased on your inputs
Parent 2 pays Parent 1
| Combined Monthly Income | $8,000 |
|---|---|
| Basic Guideline Support | $2,000 |
| Healthcare + Childcare | $700 |
| Total Child Expenses | $2,700 |
| Parent 1 Income Share (62.5%) | $1,688 |
| Parent 2 Income Share (37.5%) | $1,013 |
| Est. Monthly Support | $1,013 |
This is an estimate only. Child support is determined by a court using your state's specific guidelines.
Reality Score:save 3 numbers across housing, debt & cash to see how your full picture holds up (0–100). One calc alone can't tell you that.
Stays in your browser. Never sent to us.
Analyze 3+ calcs to unlock your Financial Picture dashboard (cross-analysis of all your numbers).
Most states use the Income Shares Model: both parents' incomes are combined, a guideline support amount is determined, and each parent pays proportionally to their income share.
Yes. More parenting time generally reduces the paying parent's obligation. States vary on whether 50/50 custody eliminates or reduces support.
Basic support covers housing, food, clothing, and basic needs. Healthcare and childcare are often added separately. Education costs may be additional.
Yes. Either parent can request modification if there's a substantial change in circumstances: income change, custody change, or significant expense changes.
Child support typically continues until the child turns 18 or graduates high school (whichever is later). Some states extend support to age 19 or 21, or through college if ordered by the court.
Enforcement actions include wage garnishment, tax refund interception, license suspension, passport denial, property liens, and contempt of court proceedings that can result in jail time.
Most states do not require parents to pay college expenses through child support. However, some states allow courts to order contribution to higher education costs as part of the support agreement.
No. Child support payments are not tax deductible for the payer and not counted as taxable income for the recipient. This differs from pre-2019 alimony rules where payments were deductible.
If a parent is voluntarily unemployed or underemployed, the court may impute income based on their earning capacity, education, and work history rather than their actual current earnings.
Extraordinary expenses like private school tuition, special needs care, and competitive sports costs are typically split between parents proportional to their income. Courts may add these amounts on top of the base child support guideline amount.
Combined Income → Guideline Amount (Income Shares)
Each parent pays their income % of total obligation
Parent with less custody pays the difference
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
Found an error in a formula or source? Report it →
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.