.calc-container {
max-width: 800px;
margin: 0 auto;
background: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
padding: 25px;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
}
.calc-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
.calc-col {
flex: 1;
min-width: 250px;
}
.calc-label {
display: block;
font-weight: 600;
margin-bottom: 8px;
color: #333;
}
.calc-input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.calc-input:focus {
border-color: #0073aa;
outline: none;
}
.calc-btn {
background-color: #0073aa;
color: white;
padding: 12px 24px;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
font-weight: bold;
transition: background 0.3s;
width: 100%;
}
.calc-btn:hover {
background-color: #005177;
}
.calc-results {
margin-top: 30px;
background: #fff;
border: 1px solid #ddd;
border-radius: 4px;
padding: 20px;
display: none;
}
.result-item {
margin-bottom: 15px;
padding-bottom: 15px;
border-bottom: 1px solid #eee;
display: flex;
justify-content: space-between;
align-items: center;
}
.result-item:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.result-label {
color: #555;
font-size: 14px;
}
.result-value {
font-size: 20px;
font-weight: 700;
color: #2c3e50;
}
.big-result {
color: #27ae60;
font-size: 28px;
}
.calc-notes {
font-size: 0.9em;
color: #666;
margin-top: 15px;
font-style: italic;
}
.article-content {
max-width: 800px;
margin: 40px auto;
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
line-height: 1.6;
color: #333;
}
.article-content h2 {
color: #2c3e50;
border-bottom: 2px solid #0073aa;
padding-bottom: 10px;
margin-top: 40px;
}
.article-content h3 {
color: #34495e;
margin-top: 25px;
}
.article-content p, .article-content li {
margin-bottom: 15px;
}
.highlight-box {
background: #eef7fb;
border-left: 4px solid #0073aa;
padding: 15px;
margin: 20px 0;
}
function calculate1099Rate() {
// 1. Get input values
var salary = parseFloat(document.getElementById("targetSalary").value);
var benefits = parseFloat(document.getElementById("benefitsVal").value);
var expenses = parseFloat(document.getElementById("annualExpenses").value);
var vacation = parseFloat(document.getElementById("vacationWeeks").value);
var weeklyHours = parseFloat(document.getElementById("billableHours").value);
// 2. Validate inputs
if (isNaN(salary)) salary = 0;
if (isNaN(benefits)) benefits = 0;
if (isNaN(expenses)) expenses = 0;
if (isNaN(vacation)) vacation = 0;
if (isNaN(weeklyHours) || weeklyHours 0) {
hourlyRate = totalAnnualNeed / totalBillableHours;
}
// 7. Update DOM
document.getElementById("minRate").innerText = "$" + hourlyRate.toFixed(2);
document.getElementById("totalRevenue").innerText = "$" + totalAnnualNeed.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("taxBuffer").innerText = "$" + employerTaxPortion.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("totalHours").innerText = totalBillableHours.toFixed(0);
// Show results
document.getElementById("resultsArea").style.display = "block";
}
How to Calculate Your 1099 Hourly Rate from a Salary
Transitioning from a full-time W-2 employee to a 1099 independent contractor or freelancer is a major financial shift. One of the most common mistakes new contractors make is simply dividing their old salary by 2,080 (the standard number of work hours in a year). Doing this usually results in a significant pay cut once taxes and expenses are factored in.
This calculator helps you determine the true hourly rate you need to charge to maintain your current standard of living, accounting for the "hidden" costs of self-employment.
1. The Self-Employment Tax Wedge
When you are a W-2 employee, your employer pays half of your FICA taxes (Social Security and Medicare), which totals 7.65% of your wages. The other 7.65% is deducted from your paycheck.
As a 1099 contractor, you are both the employer and the employee. This means you are responsible for the full 15.3% Self-Employment Tax. To net the same amount of money, you must charge enough to cover this additional 7.65% tax burden that your employer used to pay.
2. Replacing Benefits
A salary of $100,000 often comes with a benefits package worth $15,000 to $30,000. When calculating your 1099 rate, you must add the cost of these items to your revenue target:
- Health Insurance: You will pay full premiums without an employer subsidy.
- Retirement: You lose 401(k) matching contributions.
- Paid Time Off (PTO): Contractors do not get paid for sick days or holidays.
The Billable Hours Trap: Most W-2 employees get paid for 40 hours a week regardless of productivity. As a contractor, you only get paid when you are working on client projects. You typically cannot bill for administrative tasks, invoicing, marketing, or finding new clients.
3. Billable Efficiency
It is unrealistic to expect to bill 40 hours a week, 52 weeks a year. A healthy freelance business often runs on a 60% to 75% billable ratio.
For example, if you work 40 hours a week, you might only be able to bill clients for 25 to 30 of those hours. The remaining time is spent on non-billable business overhead. Your hourly rate must be high enough to cover your non-billable time.
4. Calculation Formula
To determine your minimum viable 1099 rate, use the following logic:
- Adjusted Salary Need: (Target Salary) + (Self-Employment Tax Buffer).
- Total Operating Costs: (Adjusted Salary) + (Benefits Costs) + (Business Overhead).
- Effective Billable Hours: (52 Weeks – Vacation Weeks) × (Billable Hours Per Week).
- Hourly Rate: Total Operating Costs ÷ Effective Billable Hours.
Using the calculator above ensures you don't underestimate your costs and helps you negotiate a rate that reflects your true value as an independent contractor.