NOL Calculator

An NOL generally equals your allowable business deductions minus your gross income for the year, when deductions exceed income. It's calculated after certain adjustments (for example, capital losses beyond capital gains and the pre-2018 personal/qualified business income deductions aren't included), so your NOL is usually not identical to a simple 'net loss' figure from your books — this calculator estimates NOL directly from income and deductions you enter.

For most businesses, NOLs arising in tax years after 2020 can no longer be carried back — they can only be carried forward. Certain farming losses and non-life insurance companies retain limited carryback rules; check with a tax professional if either applies to you.

Under current law, an NOL carryforward can offset at most 80% of your taxable income (computed before the NOL deduction) in the year you use it — it can't fully zero out your taxable income. Any unused portion carries forward to future years, indefinitely.

No — post-2017 NOLs can be carried forward indefinitely until fully used, subject each year to the 80%-of-taxable-income cap.

Both — sole proprietors, partners, and S-corp shareholders can generate an NOL from business losses reported on their personal return, subject to the same 80% carryforward limit as a corporation.