Contractor vs. Employee Salary Calculator

ByHenry O'Loughlin

Use this contractor vs employee salary calculator to easily compare your potential earnings as a contractor versus an employee. Customize the inputs to include your hourly rate, work hours, tax rates, and employee benefits to get a detailed comparison of your net income in each scenario.

Contractor vs Employee Salary Calculator

Results

Instructions For Contractor/Employee Salary Calculator

Follow these steps to compare total earnings of a contractor to an employee:

Enter Contractor Information:

  • Input your hourly rate as a contractor.
  • Specify the number of hours worked per week.
  • Enter the number of weeks worked per year.
  • Provide the contractor tax percentage you expect to pay.

Enter Employee Information:

  • Input the annual salary for the employee position.
  • Enter the employee tax percentage that will be deducted from the salary.
  • Provide the estimated value of employee benefits (e.g., health insurance, retirement contributions).

Calculate and Compare:

  • Click the “Calculate” button to see your Contractor Annual Income (after taxes) and Employee Net Salary (after taxes).
  • Review the Employee Total Compensation which includes the value of benefits.

Clear All Fields:

  • If you need to start over, click the “Clear All” button to reset the calculator.

Uses For The Salary To Daily Rate Calculator

  • Compare Income Options: Determine whether contracting or full-time employment offers a better financial outcome for your situation.
  • Evaluate Tax Implications: Understand how different tax rates impact your net income as a contractor versus an employee.
  • Negotiate Job Offers: Use the calculator to assess if a job offer’s salary and benefits package is competitive with what you could earn as a contractor.
  • Plan for Freelance Work: If you’re considering moving from full-time employment to contracting, use this calculator to project your potential earnings.
  • Financial Planning: Estimate your take-home pay and total compensation to make informed decisions about your career and financial goals.

Related Resources To Contractor Salary Calculator

Here are a few other free calculators we’ve built that are closely related to our contractor vs. employee salary calculator:

Disclaimer: This calculator is not legal advice. Please advise your HR or legal team first to determine the right work hour calculations and salaries depending on your type of organization, employee status, and labor laws in your state or country.

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