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W-2 vs 1099 Contractor Calculator

FREE

Compare total compensation and tax implications between W-2 employment and 1099 contract work

Tax Strategy

Inputs

Enter your information

How It Works

1Enter the same gross income for both scenarios
2Add W-2 benefits like employer-paid health insurance and 401k match
3Add 1099 business expenses you can deduct (office, equipment, software)
4Compare net income after all taxes, expenses, and benefits
5See 20-year wealth projection assuming you invest the difference

Assumptions

•2026 federal tax brackets and standard deductions
•Self-employment tax is 15.3% on 92.35% of net business income
•1099 contractors can deduct QBI (20% of qualified business income)
•7% annual investment return for wealth projection

⚡Pro Features

✓Upload W-2 and 1099 forms - AI compares your actual numbers
✓Ask AI Copilot: "Should I negotiate for W-2 or accept 1099 offer?"
✓Model health insurance marketplace costs vs employer plans
+3 more

Results

Fill in the inputs to see your results

Enter your data to calculate

How This Calculator Works

1Enter the same gross income for both scenarios
2Add W-2 benefits like employer-paid health insurance and 401k match
3Add 1099 business expenses you can deduct (office, equipment, software)
4Compare net income after all taxes, expenses, and benefits
5See 20-year wealth projection assuming you invest the difference

⚡Unlock Pro Features

✓Upload W-2 and 1099 forms - AI compares your actual numbers
✓Ask AI Copilot: "Should I negotiate for W-2 or accept 1099 offer?"
✓Model health insurance marketplace costs vs employer plans
✓Calculate optimal SEP-IRA or Solo 401k contributions for 1099
✓Compare Mega Backdoor Roth options (W-2 only vs 1099 Solo 401k)
✓Export detailed tax comparison report for accountant

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