Contract Rate to Salary Calculator
Turn a 1099 or C2C hourly rate into an equivalent W-2 salary for 2026 — adjusted for benefits value, PTO and employer-paid FICA.
Equivalent permanent salary
$112,537
Net annual income$88,000
Income tax$15,928
Social Security (OASDI) — employee share$6,977
Medicare — employee share$1,632
Social Security (OASDI) — employer share$6,977
Medicare — employer share$1,632
Federal Unemployment Tax Act (FUTA) — net rate after max state credit$42
Total deductions$24,537
Effective tax rate21.8%
Converting a Contract Rate to an Equivalent W-2 Salary
If you're comparing a 1099, C2C, or contract hourly rate against a W-2 salary offer, a straight hours-times-rate calculation overstates what the contract is really worth. This calculator adjusts for the value of employer-paid benefits, paid time off, and the employer side of FICA that a W-2 role includes but a contract rate doesn't, to show the salary that would actually put you in the same position.
What the conversion adjusts for
- Employer-paid benefits — health insurance, 401(k) matching, and paid time off — that a W-2 role typically includes and a contract rate typically doesn't
- The employer's 7.65% FICA match (6.2% Social Security up to the $184,500 wage base, plus 1.45% Medicare) that a W-2 employer pays on top of your salary, which has no equivalent baked into a contract rate
- Realistic billable utilization, since a contract rate is only earned for hours actually worked, while a salary is paid year-round including holidays and vacation
