Freelance vs Employee Calculator
Enter a job offer and a freelance alternative. See which one actually puts more money in your pocket — after SE tax, FICA, employer benefits, 401k match, and state taxes.
Verdict
Employee wins by $1,268/yr
Effective hourly: $34/hr employee vs $39/hr freelance (+$5/hr)
Job Offer
Freelance Alternative
Employee
Freelance
Numbers never leave your browser · Not financial or tax advice
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The 1.4× rule — a 1099 rate needs to be at least 40% higher than a W-2 salary to break even after taxes and benefits. So a $100k salary job needs a ~$140k contract rate to net the same.
Common Questions
You're paying both sides of FICA (15.3% vs 7.65% for W-2 employees) plus no employer benefits — no health insurance, no 401(k) match, no paid time off. The calculator accounts for all of this to show true take-home.
Generally 1.4× the W-2 equivalent — so a $100k salary job would need a ~$140k contract rate to net the same after SE tax, self-paid benefits, and the loss of employer contributions.