What Leap Date Calculates
The exact month a side-hustle can sustainably replace your primary salary.
Leap Date answers one question: when is my side income actually enough to quit?
Leaping full-time too early is the classic freelance wipeout. Leap Date sets the bar — net salary + benefits, after-tax — and projects when the hustle clears it at current growth rate. Runway
target = net_salary + benefits_value hustle_net(m) = (hustle_revenue(m) − expenses) × 0.75 hustle_revenue(m) = revenue_0 × (1 + annual_growth/12)^m leap_date = min m where hustle_net(m) ≥ target × safety_buffer if leap_date < 12 → STABLE if leap_date ≤ 36 → GUARDED else → CRITICAL
- Set target from net salary plus benefits. No gross numbers.
- Use 12-month trailing average of hustle revenue. Never the best month.
- Apply 25% SE tax reserve (30-35% for high earners in high-tax states).
- Keep safety buffer at 1.25× target. Do not cheat it.
- Verify runway
runway not set covers 6 months post-leap before committing.
Quick answer
Leap Date answers one question: when is my side income actually enough to quit?
▸ Key Specs
- ▸ Target = net_salary + benefits_value. The monthly bar the hustle must clear.
- ▸ Hustle net = (hustle_revenue − expenses) × 0.75 (25% SE tax reserve).
- ▸ Growth compounds monthly at the input annual rate. Runway
runway not set is the margin for error. - ▸ Safety Buffer (1.25×) requires hustle_net ≥ target × 1.25 before leaping. Default on.
- ▸ Leap Date = first month hustle_net ≥ target (or × 1.25 with buffer).
▸ Worked Examples
- $6.5k net salary + $800 benefits = $7.3k target. $2.2k revenue, $200 expenses, 6%/yr growthHustle net = $1,500/mo start. Leap at ~36 months without buffer; ~52 with 1.25× buffer. Runway
runway not set must carry the gap. - Same target, $3.5k hustle, $500 expenses, 10%/yr growthHustle net = $2,250/mo start. Leap at ~15 months. Higher growth compresses the curve.
- $5k net + $600 benefits = $5.6k target. $4k hustle, $400 expenses, 4%/yr growthHustle net = $2,700/mo. Leap at ~25 months without buffer; ~35 with buffer.
When to use which tool
- CYAN · STABLE — Leap date under 12 months with safety buffer — quit window is real, plan exit.
- GOLD · GUARDED — Leap date 12-36 months — keep building, reassess quarterly as hustle compounds.
- MAGENTA · CRITICAL — Leap date above 36 months or never — hustle math does not clear, rethink model.
Related
- The LeapThe exact date a side-hustle can sustainably replace a primary salary, factoring self-employment tax and benefits loss.
- When to Recheck Leap DateFive moments when the side-hustle-to-full-time math changes enough to matter.
- Six Leap Date MistakesThe errors that make the leap look safer than it is — and why most early leapers regret it.
Frequently asked questions
› Why 25% self-employment tax? Troubleshooting
Approximates SE tax (~15%) + federal + state for mid-bracket earners. Adjust mentally if you're higher or lower. Some states (Texas, Florida) are lower; NY, CA higher.
› What about irregular income?
Use 12-month trailing average of hustle revenue — never pick your best month. The average is what a bank or mortgage lender will accept, and roughly what you can spend on.
› Should I use gross or net salary as target? Trust & accuracy
Net (take-home after tax and benefits deductions). Your hustle income needs to replace what you actually bring home, not what's on the offer letter.
› How should I use a decision framework in real life? How-to
Use a decision framework to expose the tradeoff, not to outsource the decision. Write down the inputs, compare the output with your constraints, then ask what would change the answer. The strongest use is scenario testing: base case, conservative case, and failure case.
› Is this financial, legal, or tax advice? Trust & accuracy
No, this is not legal, financial, tax, medical, or professional advice unless the page explicitly says that use case is supported. It organizes assumptions so you can inspect them. Verify high-stakes choices with qualified people who can review facts, contracts, regulations, and downside risk.