Freelance vs. Employment Calculator
Should you quit your W-2 and go freelance? This calculator compares the real numbers — salary vs. freelance income after taxes, benefits, and expenses — so you can make the leap with confidence.
Freelance vs. Employee Take Home Pay
Compare W-2 employee vs. 1099 freelancer taxes on the same gross income
As an employee, you take home $4,925.30 more per year. Freelancers pay double FICA but get a 50% SE tax deduction on federal income tax.
Note: Uses 2026 IRS brackets and standard deduction ($16,100 single / $32,200 MFJ). Employee side assumes employer pays half of FICA. Freelancer side includes SE tax (15.3% on 92.35% of income) with 50% deduction. Does not include state taxes, QBI deduction, health insurance, retirement contributions, or employer benefits value.
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Frequently Asked Questions
How much more do I need to earn freelancing to match a $100k salary?+
Generally 120-130% of your W-2 salary. On a $100k salary, you'd need to earn $120-130k freelancing to match the after-tax income — because you pay both employer and employee portions of FICA (15.3%), plus you lose employer benefits (health insurance, 401k match, PTO). This calculator computes the exact break-even.
What benefits do I lose by going freelance?+
Major losses: employer health insurance (costs you $500-2,000/mo more), 401(k) match (typically 3-6% of salary), paid time off (10-20 days = $4-8k value), disability insurance, and unemployment benefits. Factor these in when comparing.
When does freelancing make more financial sense than a salary?+
When your freelance rate is 2x your hourly salary equivalent, you have 6+ months of savings, you're in a high-demand field, and you're disciplined about taxes and benefits. Freelancing also wins if you have significant deductible expenses (home office, equipment, travel).
How much more do I need to earn freelancing to match a $100k salary?
Generally 120-130% of your W-2 salary. On a $100k salary, you'd need to earn $120-130k freelancing to match the after-tax income — because you pay both employer and employee portions of FICA (15.3%), plus you lose employer benefits (health insurance, 401k match, PTO). This calculator computes the exact break-even.
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