1099 vs W-2 Take-Home Comparator

Model a simple side-by-side: W-2 salary with employee tax withholdings vs freelance revenue after a self-employment + expense cushion.

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W-2 job

$

%

1099 freelance

$

hrs

wks

%

1099 minus W-2 take-home

—

—

W-2 estimated take-home—
1099 estimated take-home—
1099 annual gross—
1099 cushion set aside—
Break-even hourly rate The 1099 hourly rate that would match your W-2 take-home, using the same hours and cushion.—

Employer benefits (health insurance, 401(k) match, PTO) aren’t fully modeled.

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How we calculate

  • W-2 take-home ≈ salary × (1 − W-2 tax%).
  • 1099 gross = rate × hours/week × weeks/year.
  • 1099 take-home ≈ gross × (1 − cushion%).
  • Difference = 1099 take-home − W-2 take-home.
  • Percentages are user-supplied approximations, not IRS tables.
  • Break-even hourly rate = W-2 take-home ÷ (hours/week × weeks/year × (1 − cushion%)).

Before you rely on this

Not tax, legal, or financial advice. Employer benefits (health insurance, 401(k) match, PTO) are not fully modeled. Self-employment tax, QBI deduction, and state rules can change outcomes substantially.

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