A $100/hour freelancer does not earn the same as a $208,000 employee ($100 × 2,080 hours). To compare fairly:
- Billable hours: use 1,000–1,400, not 2,080.
- Payroll tax: employees’ employers pay half of Social Security and Medicare (7.65%); freelancers pay both halves through self-employment tax.
- Benefits: health insurance, retirement match and paid leave are often worth 20–30% of salary.
- Business costs: equipment, software, insurance, accounting.
See the worked tables in freelance hourly rate to salary and salary to freelance rate. US employees can check their real take-home on PaycheckAfter.