Comparing a contractor offer (1099) to a job offer (W2)? This calculator shows your true take-home after all taxes and benefits.
Benefits estimate: Health ins. ~$7K-$15K/yr, 401k match ~3-6% salary, PTO ~2-4 weeks
Expenses: tools, truck, insurance, home office, software — all deductible
Going 1099? Protect yourself with professional contracts.
Get contractor service agreements, invoices, and bid templates — $17 one-time
Browse Contractor Templates →As a 1099 contractor, you pay both the employee AND employer share of Social Security and Medicare — 15.3% on net self-employment income. W2 employees only pay half (7.65%), with the employer covering the rest. This is why 1099 offers need to be 20-30% higher than W2 offers to break even.
A general rule: your 1099 rate should be 1.3-1.4× the equivalent W2 salary to break even after self-employment tax, benefits, and job security premium.