A contract rate and a W2 salary are comparable only after paid hours, unpaid time, benefits and tax assumptions are made explicit. These calculators estimate the tradeoff; they do not predict a tax return or replace an offer's written terms.
Start with annual paid hours
Annual gross contract income is hourly rate multiplied by paid hours. At $85 per hour and 2,080 paid hours, gross income is $176,800. Unpaid holidays, leave and gaps between assignments reduce billable hours. Enter hours you expect to be paid rather than assuming every week is billable.
Compare like for like
The converter distinguishes contractor work from W2 hourly work and lets you change benefits and time assumptions. The offer comparison separates base pay, bonus, equity and benefits. An equity estimate is not cash compensation; its actual value depends on the grant and outcome.
Tax estimate scope
The paycheck calculator uses 2026 federal assumptions and simplified state estimates. Local taxes, deductions, credits, special filing circumstances and individual withholding elections can change the result. Use the IRS estimator and state tax guidance for an individual estimate. Rates and thresholds need a yearly review.
Privacy and corrections
Entered rates, salaries and dates are calculated in your browser. No account is required. To report an error, provide the page and assumptions without sending sensitive pay records or tax documents. These tools are informational estimates, not tax or legal advice.