Free calculator

1099 vs W-2 Calculator

Is that 1099 offer really better than your W-2? Compare apples to apples by including self-employment tax, lost benefits, and deductible expenses.

W-2 offer

W-2 base salary

Employer benefits value

Health insurance, 401(k) match, PTO, bonuses.

1099 offer

Hourly / daily rate ($)

/hr

Billable hours per year

hrs

Annual business expenses

Benefits you'll replace yourself

Health, retirement, PTO you'd otherwise get.

1099 gross revenue

$170,000

Self-employment tax

$23,172

1099 equivalent value

$138,414

W-2 equivalent value

$119,585

1099 advantage

$18,829

Break-even rate/hour

$82

Rule of thumb: a fair 1099 rate is typically 1.4-1.6× the equivalent W-2 hourly rate to cover SE tax, benefits, and unbillable time.

This calculator provides general projections only and is not individualized tax or legal advice. Consult a qualified CPA for your specific situation.