Employee Salary Calculator

Enter your hourly rate, average billable hours per week, work weeks per year, and annual business expenses. The calculator determines your contractor net income after taxes and expenses, then finds the employee salary that would provide equivalent take-home pay when you factor in benefits like health insurance, retirement matching, and paid time off.

As an employee, your employer pays half of your Social Security and Medicare taxes (7.65%), provides benefits worth thousands of dollars annually, and gives you paid time off. These hidden benefits mean a lower base salary can still match or exceed your contractor net income.

The calculator estimates the value of employer-provided health insurance, retirement contribution matching (401k/403b), paid time off, employer payroll tax contributions, and other standard benefits. The total benefits value is shown separately so you can compare it against your actual offer.

Most contractors work 48-50 weeks per year, accounting for unpaid vacation and sick time. If you take more time off, enter a lower number. Employees typically get 2-4 weeks of paid vacation plus holidays, which is factored into the salary comparison automatically.

Include all expenses you currently pay as a contractor that an employer would cover: health insurance premiums, equipment and software, professional liability insurance, accounting fees, home office costs, and professional development. These expenses disappear when you become an employee.

Often, yes. The stability of a salary, employer-paid benefits, paid time off, retirement matching, and elimination of self-employment tax can make a lower gross number more valuable. Use the target salary range this calculator provides as a starting point for negotiation.