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Contractor vs W-2 Calculator

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Compare W-2 compensation with contractor earnings.

  • 100% Free
  • No signup
  • Private & secure
  • Instant results
  • On your device

What hourly rate equals a $120,000 salary?

A W-2 employee earning $120,000 typically costs the employer more than $120,000 in benefits and payroll taxes, while a contractor pays self-employment tax and buys their own benefits. As a rough planning range, many contractors need about $65–$85 per hour at 1,800–2,000 billable hours to match $120,000 W-2 take-home after taxes and expenses—but your state, benefits, and downtime change the break-even rate. Use the calculator to model your offer.

Private on your device

Your information stays on your device and is not uploaded.

Related tools

Compare estimated taxes, benefits, expenses, net compensation, and a contractor break-even hourly rate.

How to use this tool

Enter a W-2 offer and realistic contractor billable hours, weeks, utilization, and expenses. Use the break-even rate as a planning reference.

Worked example

A contractor rate can need to exceed a W-2 hourly equivalent to cover unpaid time, benefits, expenses, and self-employment tax.

Common examples

  • $90/hr contractor × 1,000 billable hrs vs $120,000 W-2 with benefits.
  • $75/hr with 15% self-employment tax and $12,000 benefits gap vs salaried offer.
  • Break-even near $68/hr when W-2 includes health and 401(k) match.

How it works

Compares W-2 cash pay, benefits, and taxes with estimated contractor revenue, expenses, self-employment tax, and net compensation.

Limitations

Results are based on the inputs you provide and may not cover every edge case. This tool is for general use and is not professional advice.

Privacy and file handling

Your data stays on your device and is not uploaded.

FAQ

Frequently asked questions

Is Contractor vs W-2 Calculator free?

Yes. It is free to use and you do not need to sign in or create an account.

Is my data private?

See the privacy note on this page. Many tools run on your device; some heavier file tools may use secure temporary processing when required.

Can I use Contractor vs W-2 Calculator on mobile?

Yes. Open this page on your phone or tablet, enter your inputs, and use the on-screen controls.

Part of these workflows

This tool is one step in a longer job. Jump straight to your step or open the full workflow guide.

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