Employee vs. Freelancer Calculator
Enter your employed salary and your freelance rate — and see what you actually take home in both scenarios.
EMPLOYED
Your average effective income tax rate on this salary.
NI, pension, health — your share. Typical: 6–13% depending on country.
FREELANCE
Often higher than employment — no employer-side deductions.
Full self-employed premium.
Software, tools, accountant, workspace.
ASSUMPTIONS
Share of available hours actually billed. New: 50–70 %. Established: 70–90 %.
What the calculator accounts for
On the employee side we subtract income tax and your share of payroll-funded benefits — items your employer typically helps cover, like health insurance contributions, retirement, and unemployment. On the freelance side we work from your hourly rate, your billable utilisation (how many of your weekly hours are paid), income tax, and the full cost of your own health insurance, retirement contributions, and time off. The calculator surfaces what most freelancers miss on a rate card: unbilled hours and self-funded benefits are the difference between a high rate and a comparable take-home.
Why hourly rates mislead
A $100/hour rate sounds like a six-figure salary. In reality, after taxes, self-funded health coverage, retirement contributions, unbilled admin time, and the weeks each year you don't bill (holidays, sick days, marketing, dry spells), the take-home is often closer to a mid-tier employee salary. The calculator shows what hourly rate you actually need to match an employed scenario at the same net. For the per-hour breakdown, see our freelance hourly rate calculator.
Accuracy notes
The calculator uses representative tax and benefit assumptions and produces a strong directional estimate — useful for comparing scenarios before you commit. For a binding number tailored to your jurisdiction (US 1099, UK self-employed, EU freelance status), talk to a tax advisor in your country. If you're about to make the leap, our freelance guides cover registration, bookkeeping, and the right insurance setup.