This calculator helps independent contractors (1099 earners) determine a competitive hourly rate that accounts for business expenses, taxes, and desired profit. Being a 1099 contractor means you are responsible for all your own taxes and benefits, which is different from being a W-2 employee.
.calculator-container {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 600px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-inputs {
display: grid;
grid-template-columns: 1fr;
gap: 15px;
margin-bottom: 20px;
}
.input-group {
display: flex;
flex-direction: column;
}
.input-group label {
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
}
.calculator-container button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 1.1rem;
cursor: pointer;
transition: background-color 0.3s ease;
margin-top: 10px;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #ced4da;
border-radius: 4px;
text-align: center;
font-size: 1.2rem;
color: #333;
font-weight: bold;
}
function calculate1099Rate() {
var desiredAnnualIncome = parseFloat(document.getElementById("desiredAnnualIncome").value);
var businessExpenses = parseFloat(document.getElementById("businessExpenses").value);
var taxRate = parseFloat(document.getElementById("taxRate").value);
var billableHoursPerWeek = parseFloat(document.getElementById("billableHoursPerWeek").value);
var weeksWorkedPerYear = parseFloat(document.getElementById("weeksWorkedPerYear").value);
var resultElement = document.getElementById("result");
resultElement.innerHTML = ""; // Clear previous results
if (isNaN(desiredAnnualIncome) || desiredAnnualIncome <= 0 ||
isNaN(businessExpenses) || businessExpenses < 0 ||
isNaN(taxRate) || taxRate 1 ||
isNaN(billableHoursPerWeek) || billableHoursPerWeek <= 0 ||
isNaN(weeksWorkedPerYear) || weeksWorkedPerYear <= 0) {
resultElement.innerHTML = "Please enter valid positive numbers for all fields. Tax rate should be between 0 and 1.";
return;
}
// Calculate total required earnings before taxes and expenses
// This is the sum of desired income, business expenses, and taxes on the total
// var TotalRequired = DesiredIncome + BusinessExpenses + Taxes
// Taxes = (DesiredIncome + BusinessExpenses) * TaxRate
// TotalRequired = DesiredIncome + BusinessExpenses + (DesiredIncome + BusinessExpenses) * TaxRate
// TotalRequired = (DesiredIncome + BusinessExpenses) * (1 + TaxRate)
var totalRequiredEarnings = (desiredAnnualIncome + businessExpenses) / (1 – taxRate);
// Calculate total billable hours per year
var totalBillableHours = billableHoursPerWeek * weeksWorkedPerYear;
// Calculate the hourly rate
var hourlyRate = totalRequiredEarnings / totalBillableHours;
resultElement.innerHTML = "Your estimated required hourly rate is: $" + hourlyRate.toFixed(2);
}