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Employment Income

W-2 vs Contractor Comparison

Compare the true financial picture of employee versus contractor status, accounting for taxes, benefits, and self-employment costs.
Health insurance, 401(k) match, paid time off, and other benefits your employer covers.
The 1099 rate you are weighing. Take-home assumes billable hours below.
Combined federal and state income tax, applied to both paths for a fair comparison.
Break-Even Contractor Rate
$0 /hr
The rate you would need to match your W-2 take-home.
W-2 Take-Home
$0
salary plus benefits, after tax
Contractor Take-Home
$0
after SE tax and costs
After-Tax Take-Home, Side by Side
💡 What This Means
Set your inputs above to compare the two paths.
A simplified estimate using a 15.3% self-employment tax and equal income tax on both paths. Not tax or financial advice.
🏛 Predictable Income

W-2 vs Contractor Comparison Calculator

A contractor rate that looks higher than your salary can quietly leave you worse off. The W-2 vs Contractor Comparison Calculator strips both arrangements down to what actually lands in your pocket, accounting for the extra self-employment tax a contractor pays, the benefits an employer covers for free, and the business costs that come with going independent. Enter your W-2 salary, the benefits your employer provides, the contractor rate you are weighing, and your expected business expenses, and the calculator shows estimated take-home for each path side by side along with the break-even contractor rate you would need to match your current job. Use it to negotiate a 1099 rate that truly pays you more, not just one that looks bigger on paper.