W-2 vs 1099 Calculator: Which Pays More?
Compare true take-home pay between a W-2 salaried job and a 1099 freelance contract
Enter Your Numbers
$
Your base salary as a W-2 employee
$
Your gross revenue as a 1099 contractor
$
Health insurance, 401k match, etc.
$
Software, equipment, insurance, etc.
Recommended for You
1099 Contractor Wins!
You'll take home $1,255.83 more per year as a 1099 contractor
W-2 Employee
Gross Pay$80,000
Employee FICA (7.65%)-$6,120
Federal Income Tax-$11,306.6
Net Take-Home$62,573.4
+ Benefits Value$15,000
+ Employer FICA$6,120
Total Compensation$101,120
1099 Contractor
Gross Pay$100,000
Business Expenses-$10,000
Self-Employment Tax (15.3%)-$12,716.595
Federal Income Tax-$13,454.175
Net Take-Home$63,829.23
Deductible SE Tax (50%)-$6,358.298
This reduces your taxable income
Break-Even Analysis
To match your W-2 take-home pay of $62,573.4, you would need a 1099 contract rate of approximately $98,015.365 per year (with $10,000 in business expenses).
💡 Pro Tip: Thiscomparison doesn't include state taxes, health insurance costs (if self-funded as 1099), or retirement contributions. Factor these in for a complete picture.