Contractor vs Full-Time Calculator

Compare contractor (1099) vs full-time (W-2) compensation. Factor in benefits, self-employment tax, expenses, and effective hourly rate.

Contractor (1099)

Full-Time (W-2)

Frequently Asked Questions

How much more should a contractor make than a full-time employee?
Contractors typically need 25-40% higher gross pay to match full-time compensation after accounting for self-employment tax (15.3%), health insurance, retirement contributions, and lack of paid time off.
What costs do contractors have that employees do not?
Contractors pay self-employment tax (15.3% on 92.35% of net income), their own health insurance, retirement contributions without employer match, equipment, software, and have no paid time off or unemployment insurance.
How is the equivalent hourly rate calculated?
The tool calculates effective hourly rate by dividing total annual compensation (including benefits value) by actual hours worked (accounting for PTO, holidays, and non-billable time for contractors).
Is my compensation data stored?
No. All calculations happen entirely in your browser. No salary or compensation data is ever sent to a server.