Going 1099?
Run the full picture.
Five calculators, one workflow. Know your rate, your quarterly tax burden, your W-2 break-even, your true hourly, and your retirement gap — before you quit the day job.
Freelance Rate Calculator
“What do I need to charge to actually replace my salary?”
Most people quote the naive number: desired take-home ÷ hours. That misses 15.3% self-employment tax, health insurance, retirement contributions, and the 20–30% of your week spent on admin that no client pays for. This calculator builds your rate from the ground up.
- Required hourly rate
- Annual gross revenue needed
- Markup factor vs W-2 equivalent
1099 Quarterly Tax Planner
“How much of that gross revenue goes to the IRS?”
As a contractor you pay both the employee and employer halves of Social Security and Medicare — 15.3% on top of income tax, before deductions. You also owe quarterly estimated payments or face underpayment penalties. This shows the exact safe harbor amounts for Q1–Q4.
- SE tax split (12.4% SS + 2.9% Medicare)
- QBI deduction (Section 199A)
- Quarterly payment amounts
W-2 vs 1099 Comparison
“Is a 1099 contract actually better than a W-2 offer at the same gross?”
The break-even question: at what 1099 rate does going independent beat a W-2 offer after taxes and benefits? A $150k contract sounds better than a $120k salary — until you subtract SE tax, buy your own health insurance, and self-fund retirement. This shows the exact crossover.
- W-2 vs 1099 net take-home comparison
- Break-even 1099 rate vs W-2 salary
- Benefits gap in dollars
True Hourly Rate Calculator
“What's my actual hourly rate after overhead, commute, and unpaid time?”
Your gross hourly is not your real hourly. Commute time, equipment costs, unpaid admin hours, and professional development all reduce the effective rate. A $75/hr contract with 10 hrs/week unpaid overhead and a $200/mo tools bill is closer to $58/hr. Know the real number before you commit.
- True hourly after all work-related costs
- Effective vs quoted rate gap
- Annual overhead in dollars
Savings Rate + Retirement Projection
“Am I building wealth fast enough without an employer 401k match?”
The hidden cost of 1099 is the lost employer match — typically 3–6% of salary, worth $3,000–$9,000/yr on a $150k income. Without it, you need to self-fund a larger percentage to stay on track. This shows your savings rate, years-to-FI, and how much extra you need to contribute to close the match gap.
- Current savings rate as % of income
- Years to financial independence
- Additional monthly savings to offset lost match
The SE tax surprise
W-2 employees pay 7.65% in payroll tax and their employer pays the other 7.65%. As a 1099 contractor, you pay both halves — 15.3% on your net self-employment income before a single dollar of income tax. On $120k in freelance income that's $18,360 in SE tax alone, before federal and state income tax. Most people who transition from employment don't account for this until Q1 when the IRS bill arrives.
The hidden cost of benefits
Employer-sponsored health insurance, a 401k match, paid vacation, and sick days have real dollar values that disappear the moment you go 1099. A typical employer covers $700–$1,400/mo in health premiums and matches 3–6% of salary into a retirement account. That's $15,000–$25,000/yr in compensation that vanishes from your package — and must be self-funded out of your contractor revenue. Most freelancers quote a rate that replaces their take-home salary but not their total compensation.
Billable utilization is never 100%
At 40 billable hours per week, a $100/hr rate yields $208k gross. But no contractor bills 40 hours every week. Sales calls, proposal writing, invoicing, professional development, and the gaps between contracts all reduce billable utilization to 60–75% in practice. At 70% utilization, that $100/hr rate delivers $145k gross — before expenses. If you set your rate assuming 100% utilization, you will consistently earn less than you planned.
Start with the most important number.
What do you need to charge to replace your salary?
Open Freelance Rate Calculator