W2 to 1099 Calculator
Free W2 to 1099 calculator. See exactly what consulting revenue and hourly rate you need to match your current corporate salary, bonus, and benefits package.
How this calculator works
Most "what salary do I need" calculators compare gross to gross. That math lies. Your W2 paycheck was only part of what your employer paid for you. This calculator starts with your real take-home, adds the benefits cost you now have to cover, layers in business expenses, then grosses the whole thing up by the higher 1099 effective tax rate.
What this tool gives you
- The 1099 revenue needed to match your current package
- Hourly, day, and monthly retainer equivalents
- A breakdown of what your W2 actually costs vs what you take home
- How much of your real compensation is hidden in taxes and benefits
Built for experienced corporate professionals
For senior professionals with 10–25 years of experience whose true market value is hidden by employer salary bands.
Frequently asked questions
What revenue do I need as a 1099 to match my W2 salary?
You need significantly more than your gross salary. To match a W2 package your 1099 revenue must cover your old take-home, replace employer-paid benefits (health insurance, payroll tax, 401k match — usually 20–30% of salary), cover business expenses, and absorb a higher effective tax rate including self-employment tax. For most senior corporate professionals the answer is roughly 1.4–1.7x your old gross salary.
Why is the 1099 revenue target so much higher than my W2 salary?
Because your W2 salary was never your real compensation. Your employer was paying 20–30% on top in benefits, payroll tax, and retirement match. When you go independent, you pay all of that — and you pay self-employment tax (~15.3%) on top of regular income tax.
How is this different from the consulting rate calculator?
The consulting rate calculator starts with your income target and works backward to a billable rate. This calculator starts with your current W2 package and tells you the 1099 revenue you need to match it.
What tax rate should I use for the 1099 side?
A practical planning number is 28–35% effective, depending on state. That covers federal income tax, state tax, and self-employment tax (15.3% on the first ~$168K of net earnings).
Should I count my bonus when calculating this?
Yes — but only the portion you reliably receive. Use a conservative 3-year average, not your best year.
My calculated 1099 revenue feels impossible. What now?
It is not impossible. Experienced corporate professionals routinely charge $250–500/hr once they understand their market value. Revenue follows positioning, not effort.