Current W-2 Baseline
Health, 401k match, PTO, etc.
Federal + state combined
Business Overhead & Startup
Labeled startup defaults (override as needed): tools/equipment $5,000; truck/vehicle deposit $3,000; business license + bond + insurance $2,500; initial materials $2,000. SE tax = 15.3% on net self-employment income (SECA §1401).
Tools, vehicle, license, bond, insurance, materials
Insurance, software, vehicle, phone, misc.
Net margin on materials pass-through
Materials billed to clients per month
Your target W-2 equivalent take-home
Months until fully booked
Billable Hours
~65–70% utilization of 48hr work week
Excl. vacation and holidays
Average billable % while building client base
Minimum Billable Rate to Hit Owner Pay Target
W-2 Break-Even Month
Net contractor > W-2 net
Annual Revenue Target
Billable + materials
SE Tax Annual (SECA)
15.3% of net SE income
Cash Needed for Ramp
To survive through break-even
Month-by-Month Ramp
| Month | Utilization | Billable Rev ($) | Materials Net ($) | Overhead ($) | SE Tax ($) | Net ($) | Cumulative Net ($) |
|---|
Utilization Sensitivity
| Utilization % | Billable hrs/wk | Annual Billable Rev | Annual Net After Overhead + SE Tax |
|---|