Contractor vs Employee Calculator

Worker classification depends on applicable laws and facts. Cost alone cannot decide classification.

Your numbers

Enter your numbers to see the result.

How Contractor vs Employee works

Contractor cost is hourly rate times hours. Employee cost adds percentage burden and hourly overhead to wage before multiplying by the same hours.

A worked example

These sample values illustrate the calculation. Use your own numbers in the calculator for your result.

Example inputs
Contractor hourly rate
40
Employee hourly wage
25
Employer burden %
20
Other employee costs per hour
5
Expected hours
160
Contractor cost
$6,400.00
Employee cost
$5,600.00
Contractor minus employee cost
$800.00

Assumptions and limits

Worker classification depends on applicable laws and facts. Cost alone cannot decide classification.

Planning estimate only. This is not legal, tax, payroll or accounting advice.