Salary vs Freelance Comparator

What this tool does

Compares W2 salary (including benefits) to freelance income. Shows effective W2 hourly, freelance net annual and monthly, and the breakeven hourly rate to match W2. You enter salary, benefits, tax percent, and freelance rate, utilization, and expenses. Educational only; not tax or financial advice.

When to use it

• Considering going freelance and want to know what hourly rate matches your current salary
• Comparing a job offer to your freelance income
• Checking how benefits and taxes affect the comparison

Inputs explained

• W2 Salary – Your current or offered salary.
• Benefits value – Benefits load in dollars (or use percent toggle).
• Taxes % – Rough tax rate applied to both W2 and freelance.
• Freelance hourly rate, utilization, expenses – Your freelance inputs. See utilization.

How to use it

1. Enter W2 salary, benefits, and tax percent. Enter freelance rate, utilization, expenses.
2. Click Calculate. Compare effective rates and breakeven.

Common mistakes

• Using 100% utilization (70% or less is more realistic)
• Ignoring benefits when comparing (they are part of total comp)

Use it with AI

This tool is not AI-powered. It is a calculator. You can use the results with an AI assistant in these ways:

• Paste the comparison and ask for a one-paragraph summary of when freelance wins vs W2.
• Ask an AI to list 5 ways to improve freelance net (rate, utilization, expenses).
• Use the AI Toolkit and Job Search AI Workflow or Founder Ops AI Workflow for career and ops planning.

Explore the AI Toolkit, Job Search AI Workflow, and Founder Ops AI Workflow for more.

Related tools

• Freelance Rate Calculator
• Project Pricing Calculator
• Resume Bullet Rewriter
• Employee vs Contractor Cost Calculator

Related glossary terms

• Utilization rate
• Benefits load
• Buffer

FAQ

What is effective W2 hourly?

Salary plus benefits, divided by roughly 2000 hours.

How do I value benefits?

Health, 401k match, PTO. Ballpark 15 to 25% of salary.

Is this exact?

No. Use as a directional comparison; taxes and benefits vary.