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)
Comparison Results
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Contractor Take-Home
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Full-Time Take-Home
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Difference
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Break-Even Rate
Contractor Breakdown
Gross Annual
After Tax
Benefits Cost
After Expenses
Effective Hourly
Full-Time Breakdown
Gross Annual (Salary + Bonus)
After Tax
Benefits Value
PTO Value
Total Comp (with Benefits)
Effective Hourly
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.