1099 vs W-2 Comparison
What 1099 rate equals your W-2 salary?
Calculator
Compare 1099 vs W-2
Enter a W-2 salary to see what 1099 rate you'd need to take home the same amount — or enter a 1099 rate to see the W-2 equivalent.
Health insurance, 401k match, etc.
Frequently Asked Questions
Why do 1099 contractors need to earn more?
As a W-2 employee, your employer pays half of FICA (7.65%). As a 1099 contractor, you pay both halves (15.3%). You also lose employer-provided benefits like health insurance, 401k match, paid time off, and unemployment insurance. To take home the same amount, your 1099 rate needs to be 25–40% higher.
What benefits should I factor in?
Health insurance ($5K–$15K/yr), 401k match (3–6% of salary), paid time off (worth ~10% of salary), disability/life insurance, and unemployment insurance. A typical benefits package is worth $10K–$25K per year.
Can 1099 contractors deduct business expenses?
Yes — home office, equipment, software, travel, and health insurance premiums (if self-employed) are all deductible. This calculator shows the base comparison; actual results vary depending on your specific deductions.
1099 vs W-2 Salary Comparison Calculator
Should you take a 1099 contract or W-2 position? This calculator accounts for the extra self-employment tax, lost employer benefits, and tax deductions to show the true equivalent rate.