This tool will help you compare the take-home pay between being a contractor and an employee.

## Contractor vs Employee Salary Calculator

This calculator evaluates the total cost of hiring an employee versus a contractor.

### How to Use It:

Fill in the annual salary, number of weeks worked per year, hours worked per week, and the cost of benefits (if any) for an employee. Then, provide the contractor’s hourly rate. Click “Calculate” to see the result.

### How It Calculates the Result:

The calculator considers the following parameters:

- Annual Salary of the employee.
- Number of weeks the employee works per year.
- Number of hours the employee works per week.
- The cost of the benefits provided to the employee, if any.
- Contractor’s hourly rate.

The calculation is based on the formula:

*Employee Total Cost = Annual Salary + Benefits Cost*

*Contractor Total Cost = Contractor Hourly Rate * Hours per Week * Weeks per Year*

### Limitations:

This calculator does not account for taxes, insurance costs, or other potential expenses. It also assumes the contractor works the same hours as a full-time employee.