W-2 vs 1099 Calculator

Find your true equivalency · Benefits toggle · Target 1099 rate formula · Hidden FICA cost · QBI deduction

W-2 Job Details
W-2 annual salary
$
Gross salary on your offer letter
Filing status
Typical 1099 expense ratio
%
%
% of gross revenue spent on business expenses. Typical: 10-25%.
Benefits Toggle
These are the hidden benefits most people forget. If you switch to 1099, you pay these yourself.
Employer-paid health insurance
Employer pays their share — you lose this as 1099
Annual health insurance value (employer portion)
$
Average employer contribution ~$7,200/yr single
401k employer match
Free money — 1099 workers get $0 match
Annual 401k match value
$
Typical: 3-6% of salary
Paid time off (PTO / vacation)
1099 workers don't get paid when they don't work
Annual PTO value
$
Days × daily rate. 2 weeks = ~$3,850 on $100k
Other benefits (dental, vision, life, FSA)
Total annual benefits value: $14,200 — this is what you'd need to cover as a 1099 contractor.
Target 1099 Rate to Match Your Lifestyle
$143,353
gross annual (1099 revenue needed)
Your W-2 hourly
$48/hr
Target 1099 hourly
$69/hr
Formula: (Salary + Benefits $14,200 + Employer FICA $7,650) ÷ (1 − 15% expenses)
Same $100,000 Gross — Apples to Apples
W-2 Employee
FICA (employee): $7,650
Employer FICA (hidden): $7,650
Income tax: $13,170
Benefits value: +$14,200
Take-home: $79,180
+ $14,200 benefits
1099 Contractor
Business expenses: −$15,000
SE tax (15.3%): −$12,010
SE deduction: +$6,005
QBI deduction: +$12,579
$67,200 take-home
NO benefits included
⚠️ Same $100,000 gross as 1099 is actually $11,980 LESS take-home after taxes + lost benefits
The hidden cost: As a W-2 employee, your employer pays $7,650 in FICA tax on your behalf — you never see it. As 1099, you pay ALL of it yourself (15.3% total). This is why 1099 rates must be higher.