Thinking about selling your managed service provider (MSP) business in the United States? Use this free after-tax compensation calculator to estimate how much you might keep after federal, state, and capital gains taxes. It is particularly helpful to analyze the difference in after-tax compensation for an asset sale compared to a share sale. This tool is designed to provide a general estimate only. Every seller’s tax situation is different, so we recommend consulting a qualified CPA or tax advisor before making any decisions.
MSP After-Tax Compensation Calculator
Choose 'Asset Sale' if the buyer is purchasing individual assets and liabilities of your business. Choose 'Share Sale' if they are buying your company’s shares or legal entity. Most MSP acquisitions are done as Asset Sales.
C-Corporations are double taxed at both the corporate and shareholder levels. Select 'Yes' only if your business files as a C-Corp with the IRS.
Enter the total expected proceeds from the sale, including upfront payment, earnouts, and holdbacks.
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Choose your personal federal income tax rate based on your income bracket. This applies to the ordinary income portion of the sale. View IRS rates
Enter the income tax rate for your state of residence. This applies to any ordinary income from the sale. View rates.
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Choose your federal long-term capital gains rate. Most MSP owners fall into the 15% or 20% range. Learn more
An additional 3.8% tax may apply if your total income exceeds certain thresholds. Check NIIT rules
Some states tax capital gains separately from income. Enter your state’s rate or 0% if not applicable. View rates.
Your adjusted basis is what you’ve invested in the business—usually what you paid to acquire it, plus capital improvements, minus depreciation. For MSP founders, this is often negligible. If you're unsure, leave it at $0. IRS link.
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Estimate the percentage of the sale that qualifies as capital gains as opposed to ordinary income. 70% is a common rule of thumb for MSP asset sales. IRS link.
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MSP Valuation Calculator
If you are curious about what the market value of your MSP may be, check out our MSP Valuation Calculator for an estimated valuation based on just a handful of key variables.
Limitations
This tool provides a simplified estimate based on common assumptions and user-provided inputs. It does not account for entity-specific tax treatments, state-specific rules, deductions, transaction costs, personalized tax strategies, or your tax brackets changing from year-to-year. Results may vary significantly from your actual tax liability. Always consult a CPA or tax advisor for accurate, personalized guidance.
