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Making the decision to go freelance or remain an employee involves careful financial planning. This calculator helps you compare traditional salaried employment with freelance or self-employed income by factoring in different tax treatments, business expenses, and contribution requirements. Whether you're considering a career transition or just curious about the financial implications, this tool provides clear insights into which option might be more profitable for your situation.
This calculator compares traditional employee compensation with freelance income by applying different tax treatments. For employees: gross salary minus income tax and standard deductions equals net take-home pay. For freelancers: gross revenue minus business expenses, then minus self-employment tax and income tax equals net income. The difference shows which option provides higher net earnings.
Your Income Comparison: Comparing $60,000 employee salary with $70,000 freelance revenue including $10,000 business expenses.
Analysis: Employee Net Salary: $48,000 | Freelance Net Income: $52,000 | Difference: +$4,000 for freelancing
Yes, you can deduct legitimate business expenses from freelance revenue before calculating taxes.
Yes, it applies different tax treatments - employee income tax for salaried work and self-employment tax plus income tax for freelance work.
Yes, the calculator shows both annual and monthly breakdowns for easy comparison and budgeting.
Yes, it works perfectly for contractors, consultants, and other self-employed individuals.
Yes, completely free with no registration required. All calculations are performed instantly in your browser.
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