1099 vs W2 Comparison Calculator
Compare freelance 1099 income vs W2 employment side by side. See the real difference in take-home pay, taxes, and benefits. All calculations happen right here in your browser — your numbers never leave your device, and there is nothing to sign up for.
Contractor vs. W-2 Comparison
Compare the true take-home pay between W-2 employment and freelancing to make an informed decision.
Annual employer contribution
Annual employer match amount
PTO value, gym, education, etc.
Software, equipment, office, etc.
W-2 Employee
Net Take-Home
$76,439
Effective rate: 19.5%
$37/hr effective
Freelancer
Net Take-Home
$63,684
Effective rate: 25.3%
$31/hr effective
Freelance Disadvantage
-$12,755
per year compared to W-2
Break-Even Freelance Income
$119,482
Freelance income needed to match W-2 take-home
Break-Even Hourly Rate
$57/hr
At 40 hrs/week, 52 weeks/year
How to Use This Calculator
Using this calculator is straightforward. Start by entering your financial information in the fields above. You can adjust any value at any time and the results will update instantly — there is no submit button to press.
- Fill in each field with your best estimates. Exact numbers are great, but reasonable approximations work well too.
- Review the results section that appears below the inputs. Each number is labeled so you know exactly what it represents.
- Try different scenarios by adjusting your inputs. This is a great way to understand how changes in income or expenses affect your bottom line.
- Use the results to plan ahead — whether that means setting aside money for quarterly taxes, adjusting your rates, or identifying deductions you may have missed.
Understanding Your Results
The results above give you a clear snapshot of your financial situation based on the numbers you entered. Here is how to make the most of them:
Look at the big picture first. Start with the summary totals before diving into line-by-line details. This gives you a sense of where you stand overall.
Compare scenarios. Try changing your inputs to see how different situations play out. What happens if your income increases? What if you claim an additional deduction? Playing with the numbers helps you make informed decisions.
Use this as a starting point. These calculations are based on general federal rules and standard rates. Your actual tax situation may differ based on your state, filing status, and specific circumstances. When in doubt, bring these numbers to a tax professional — they make a great conversation starter.
Related Tools
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Calculate your Social Security and Medicare self-employment taxes. See your total SE tax, the deductible half, and your effective rate.
Freelance Hourly Rate Calculator
Calculate the minimum hourly rate you need to charge to cover taxes, expenses, and hit your income goals as a freelancer.
Frequently Asked Questions
What is the difference between 1099 and W2?
A W2 employee has taxes withheld by their employer, who also pays half of Social Security and Medicare taxes. A 1099 contractor pays all their own taxes, including the full 15.3% self-employment tax, but can deduct business expenses and has more flexibility.
How much more should a 1099 contractor make vs W2?
A common rule of thumb is that a 1099 rate should be 25-30% higher than the equivalent W2 salary to account for self-employment taxes, lack of benefits, and business expenses. Our calculator shows you the exact number for your situation.
Do 1099 contractors get benefits?
1099 contractors don't receive employer benefits like health insurance, 401k matching, paid time off, or workers comp. They must purchase these independently, which is an important cost to factor in when comparing offers.