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Freelance vs Full-Time Calculator

A realistic earnings comparison that accounts for taxes, benefits, unpaid time off, and the true cost of going solo.

Comparing Real Take-Home Pay

A $100,000 full-time salary is not equal to $100,000 in freelance revenue. Once you account for self-employment tax, health insurance premiums, equipment costs, retirement contributions, and unpaid time off, the gap can be surprisingly wide in either direction.

The 1.3x Rule of Thumb

Freelancers generally need to charge at least 30 to 40 percent more per hour than an equivalent employee to break even on benefits, taxes, and overhead. This calculator gives you a personalized number rather than relying on rough estimates so you know exactly what rate you need to match or beat your current salary.

Beyond the Numbers

Money is only part of the equation. Freelancing offers flexibility, autonomy, and the ability to choose your projects — but it also comes with income instability, isolation, and the responsibility of managing every aspect of your business. Full-time work offers stability and benefits but often less control over your time.

Making the Right Call

Use the financial comparison as your baseline, then factor in how much you value flexibility versus stability. The right answer is different for everyone, and it can change at different stages of your life and career. This tool gives you the numbers — you bring the self-reflection.

Methodology & Data Sources

This calculator uses standard U.S. tax and benefits assumptions based on:

  • IRS Self-Employment Tax Rates (2026) — 15.3% (12.4% Social Security + 2.9% Medicare) on net earnings
  • Kaiser Family Foundation (KFF) Employer Health Benefits Survey — Average annual premium: $8,435 single / $23,968 family (employer pays ~73%)
  • BLS National Compensation Survey — Paid leave (10-15 days), retirement match (3-6%), payroll taxes (7.65% employer share)
  • NASE / Freelancers Union Surveys — Freelancer overhead: equipment, software, marketing, admin (~15-20% of gross)

Assumptions: 48 billable weeks/yr (2 weeks vacation + 2 weeks sick/bench). Freelance net = gross × 0.70 (30% tax/benefits/overhead). Full-time net = salary × 0.78 (22% tax/benefits). Health insurance valued at $8,500/yr individual. Results are illustrative; consult a CPA for tax planning.

Last review: August 2026. Tax rates per IRS 2026 brackets.