1099 vs W-2 Calculator
Compare a self-employed 1099 contract rate to a W-2 salaried job. The 1099 needs to be ~25-30% higher to match a W-2 once you account for taxes and benefits.
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Comparison
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W-2 net + benefits
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1099 net after taxes & self-benefits
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1099 gross revenue
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Break-even 1099 rate
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About 1099 vs W-2 Calculator
Rule of thumb
A 1099 rate generally needs to be 25-35% higher than the equivalent W-2 hourly to match — to cover SE tax (7.65% extra), health insurance, retirement, PTO, and no employer 401k match.
Why 1099 can still win
Home office deduction, SEP-IRA / Solo 401(k) limits (up to $69k/year), business expense write-offs, ability to negotiate rate annually, multiple clients. Strategic for high earners.
Risks of 1099
No paid time off, no employer health/retirement, no unemployment insurance, irregular income, more record-keeping, must pay quarterly estimated taxes.