Important caveat
Contracting and employment differ in taxes, insurance, paid leave, risk, utilization and legal classification. This is a planning comparison, not legal or tax advice.
Example
At 90 per hour and 1,400 billable hours, contractor revenue is 126,000. After 12,000 in business expenses, contractor value is 114,000 before tax differences. Salary plus benefits of 95,000 + 15,000 equals 110,000.
Common mistakes
Do not compare hourly rate to salary directly. Contractors may have unpaid time, insurance costs, equipment costs, administration and less predictable work.
Limitations
This calculator does not determine worker classification, tax treatment, legal risk, health insurance value or retirement benefits. Use qualified advice for high-stakes decisions.
Last reviewed: 2026-05-17