W-2 to 1099 Contractor Calculator

Transitioning from full-time employment to contracting? Calculate your required 1099 billing rate to avoid taking a hidden pay cut.

Full-Time (W-2) Compensation

Base W-2 Annual Salary$100,000

PTO / Holidays (Days)

401(k) Match (%)

Annual Health Benefit ($)

Est. 1099 Expenses ($)

Weekly Billable Capacity (Hours)30 hrs/week

1099 Equivalency Target

Target 1099 Hourly Rate

$84/hr

To match your $100,000 W-2 compensation package.

Required 1099 Gross Revenue:$122,650

Lost Benefits Value:$10,000

Extra Self-Employment Tax:$7,650

Annual Billable Hours:1470 hrs

💡 Contractors pay both halves of Social Security and Medicare taxes (15.3% total), while W-2 employers cover 7.65%.

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