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Compare Earnings

W-2 vs 1099. See take-home side-by-side

Estimate and compare take-home pay as a W-2 employee vs a 1099 contractor using a simplified model and a tax rate you provide.

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

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Frequently Asked Questions

Is this calculator tax advice?+
Use this calculator to compare take-home scenarios and pressure-test negotiations before choosing a work structure. It uses a simplified model and a tax rate estimate you provide, so final numbers should still be refined for your actual situation.
Does this include benefits like health insurance or PTO?+
No. This calculator focuses on cash take-home estimates and does not value benefits such as health insurance, retirement matches, or paid time off, or the cost of replacing them as a contractor. Consider total compensation, not just cash.
What does "effective income tax rate %" mean?+
It is an estimate of your combined income tax rate (often federal + state + local) applied to taxable income. Because tax rules vary widely, this tool asks you to provide your own estimate.
Does this include deductions, credits, or QBI?+
No. This calculator does not model deductions, credits, QBI, retirement plan nuances, or other edge cases. Use the result as a quick planning estimate, then refine the comparison if the decision is material.
Why does 1099 show higher payroll tax?+
In the U.S., contractors often pay an estimated self-employment tax that covers both the employee and employer share of Social Security and Medicare. This tool does not model wage-base caps or additional Medicare tax.
What should I do with the break-even number?+
It is a rough estimate of the 1099 gross amount you might need (before expenses) to match the W-2 take-home estimate, given your inputs. Use it as a starting point for negotiation.
Global network background

Moving from this model into an actual 1099 program?

Gruv onboards contractors, handles classification gates, collects tax forms, and runs the payouts your finance team already scoped.

Many teams pilot in weeks; timelines depend on scope and integrations.