1099 vs W2 Calculator: Compare Earnings & Taxes

This tool helps you compare your income and expenses if you’re a 1099 contractor versus a W-2 employee.

How to Use the 1099 vs W2 Calculator

This calculator helps you compare the potential net income from a 1099 contract position versus a W2 employee position.


  1. Enter your annual income in the “Annual Income” field.
  2. For 1099 calculation, enter your estimated annual expenses in the “Annual Expenses” field. If you are considering only a W2 position, you can enter 0.
  3. Input your expected tax rate in the “Tax Rate (%)” field.
  4. Click “Calculate” to see the net income for both W2 and 1099 positions.

How It Calculates:

For W2:

  • Net Income = Annual Income – (Annual Income * Tax Rate)
For 1099:
  • Taxable Income = Annual Income – Annual Expenses
  • Tax = Taxable Income * Tax Rate
  • Net Income = Taxable Income – Tax


This calculator provides an estimate based on the input provided. Actual net income may vary depending on various factors such as additional deductions, state taxes, and financial circumstances unique to each individual.

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