W2 →
Contractor
Break-Even Matrix
How many hours/week do you actually need to bill?
Your Current W2 Package
Base Salary
Annual Bonus (est.)
Enter 0 if you skip bonus in your target
Employer Health Insurance Value
~$500/mo is a common employer contribution. You'll pay this yourself as a contractor.
Other Benefits (401k match, etc.)
401k match often ~3% of salary = ~$2,160 on $72k
Contractor Assumptions
Federal Holidays Off
Federal: 11 days. Some contractors take all, some work them.
Vacation Days (unpaid)
As a contractor, vacation = no pay. Factor in what you want.
Sick Days (unpaid, est.)
Self-Employment Tax Add-on
~7.65% — as a W2 employee your employer paid half of FICA. Now you pay both halves.
Business Expenses / Year
Software, home office, equipment, accountant, etc.
Hours/Week Needed to Break Even
by rate & weeks worked
Simple Annual Comp Calculator
Hourly Rate ($)
Hours / Week
Weeks / Year
Weekly Gross
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Monthly Gross
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Annual Gross
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