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Compare Earnings

Free W-2 vs 1099 Calculator

Compare take-home pay as a W-2 employee vs a 1099 contractor. Plug in your salary, projected 1099 gross, and estimated tax rate to see which path nets more.

Self-employment taxBreak-even grossNegotiation-ready
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Your inputs

Adjust inputs to compare scenarios.

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Tax estimate

Effective income tax rate % applied to taxable income (income tax only; payroll taxes are estimated separately).

W-2 scenario

Salary and optional employer benefits value (health, match, etc.).

1099 scenario

Gross revenue and deductible business expenses.

Need a rate? Try the freelance rate calculator →

Take-home planning model

Use this model to compare cash take-home across W-2 and 1099 scenarios before negotiations, offer reviews, or role changes. It simplifies taxes and does not model the full benefit stack or every U.S. tax rule.

  • Income tax is estimated using your effective rate % (no federal/state tables).
  • Payroll taxes are estimated without wage-base caps or additional Medicare tax.
  • Add benefits, retirement, insurance, and PTO costs separately for a fuller comparison.
Process

How it works

  1. 01

    Enter W-2 salary

    Cash salary before payroll taxes.

  2. 02

    Set 1099 gross

    What you would invoice if you went independent.

  3. 03

    Add effective tax rate

    Your combined estimate for federal + state + local.

  4. 04

    See take-home gap

    Including a break-even gross that matches W-2 take-home.

Keep going

Related tools

Freelance Rate Calculator

Turn a take-home goal into a minimum billable hourly rate.

Pricing Calculator

See how MoR fees, FX spreads, and corridor costs shrink the gross you invoice.

Home Office Deduction

Size the deduction that lifts your net as a 1099 contractor.

Frequently Asked Questions

How should I use this comparison?+
Compare take-home scenarios and pressure-test negotiations before choosing a work structure. The model uses a tax rate estimate you provide, so refine the numbers for your actual situation before deciding.
Does this include benefits like health insurance or 401(k)?+
No. This calculator focuses on cash take-home and does not value health insurance, retirement matches, or PTO, or the cost of replacing them as a contractor. Compare total compensation, not just cash.
What does "effective income tax rate %" mean?+
Your combined income tax rate (federal + state + local) applied to taxable income. Tax rules vary widely, so the tool asks for your own estimate.
Does this include deductions, credits, or QBI?+
No. The calculator skips deductions, credits, QBI, retirement plan nuances, and other edge cases. Use the result as a quick planning estimate, then refine if the decision is material.
Why does 1099 show higher payroll tax?+
In the U.S., contractors pay self-employment tax covering both the employee and employer share of Social Security and Medicare. The tool does not model wage-base caps or additional Medicare tax.
What should I do with the break-even number?+
The break-even is the 1099 gross you need (before expenses) to match the W-2 take-home, given your inputs. Use it as a starting point for rate negotiation.

Moving from this model into an actual 1099 program?

Gruv onboards contractors, runs classification gates, collects W-9s, and pays out on the corridors your finance team already scoped.

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