Freelance vs Full-Time Calculator
Enter your full-time salary and freelance parameters to instantly see your break-even hourly rate, after-tax take-home, and a side-by-side total compensation comparison — including benefits, retirement, and self-employment tax.
Calculate NowFor informational purposes only. Not tax advice. Consult a tax professional for your specific situation.
Full-Time Employment
e.g. enter 4 for 4%
e.g. enter 6 for 6%
Employer's share of the premium
Your out-of-pocket share
Freelance Parameters
Software, equipment, home office, etc.
Individual / family plan as self-employed
Break-Even Freelance Rate
$148,766 gross/year to match your full-time package
Full-Time Take-Home
$81,719
per year after taxes
Total package: $137,723
Freelance Take-Home
$82,109
at break-even rate
Gross needed: $148,766
At break-even, both take-home amounts are approximately equal. The difference is $391 due to rounding in the two-pass approximation.
Ready to Go Freelance?
SponsoredIf the numbers look good, these platforms can help you find your first (or next) freelance contract. The following are sponsored links.
Toptal
Top 3% of freelance talent
A curated network matching senior engineers, designers, and finance experts with companies like Airbnb and Shopify. Screening is rigorous — acceptance rates around 3%.
- Premium hourly rates ($60–$200+)
- Long-term engagements available
- No-risk trial period for clients
Upwork
World's largest freelance marketplace
The go-to platform for freelancers across tech, writing, design, and more. Flexible project types from quick gigs to full-time contracts, with built-in escrow and payment protection.
- Hourly & fixed-price contracts
- Built-in payment protection
- Get started with a free account
FreelanceVsFulltime may earn a commission when you sign up through the links above, at no extra cost to you. We only feature platforms we believe offer genuine value to freelancers.
How It Works
Enter Your Numbers
Input your full-time salary, benefits, and freelance parameters like billable hours and business expenses.
See the Break-Even Rate
Instantly see what hourly rate you need to charge as a freelancer to match your full-time total compensation.
Compare Side by Side
Review the detailed breakdown: taxes, benefits, retirement, and net take-home for both scenarios.
Frequently Asked Questions
What does this calculator include in total compensation?
For full-time employment, total compensation includes: gross salary, employer 401(k) match, employer health insurance premium contribution, and the monetary value of paid time off. Taxes deducted include federal income tax, state income tax (where applicable), and FICA (Social Security + Medicare).
For freelance, compensation includes gross revenue minus: self-employment tax (15.3% on 92.35% of net), the self-employed health insurance deduction, the QBI (Qualified Business Income) deduction where eligible, business expenses, and federal/state income taxes.
What is the break-even hourly rate?
The break-even rate is the hourly rate you need to charge as a freelancer — given your specified billable hours per week — to achieve the same after-tax net income as your full-time position. Rates above this number mean freelancing is financially advantageous; rates below mean full-time employment offers better net compensation.
Does this account for self-employment tax?
Yes. Self-employment (SE) tax is calculated at 15.3% on 92.35% of net self-employment income, consistent with IRS Publication 334. The calculator also applies the 50% SE tax deduction, the self-employed health insurance deduction (IRC §162(l)), and the QBI deduction (IRC §199A, up to 20% of qualified business income) where applicable.
Which states are supported?
All 50 US states and Washington DC are supported. Nine states have no state income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY) and are calculated accordingly. State tax rates are approximations based on publicly available 2024 tax schedules; they may not reflect all local taxes or credits.
Is this actual tax advice?
No. This calculator provides estimates for informational and comparison purposes only. Tax rules are complex and individual circumstances vary widely. Please consult a qualified tax professional or CPA for advice specific to your situation.