Locum Tenens Rate Calculator

Input the daily rate offered by the locums agency and the estimated number of days you plan to work per year at that assignment.

The calculator outputs your total gross income as an independent contractor, and then applies a discount factor to show what this equates to as a W-2 permanent employee.

Locum tenens rates look incredibly high on paper, but comparing a 1099 locums rate directly to a W-2 permanent salary is comparing apples to oranges.

As a 1099 contractor, you are responsible for the employer half of payroll taxes (Medicare/Social Security), your own health insurance, malpractice coverage (sometimes), and you receive no paid time off or retirement matches.

Total Gross: Daily Rate × Days Worked.

Comparable Permanent Salary: Gross Income reduced by an estimated 25% overhead factor. This 25% accounts for the ~7.65% self-employment tax plus the lost value of standard W-2 benefits (health, dental, 401k match, CME allowance).

• Pearl: You can negotiate everything in a locums contract. Beyond the daily rate, negotiate travel stipends, lodging quality, and exact hours expectations.
• Pearl: Set up a Solo 401(k). 1099 income allows you to aggressively shelter tens of thousands of dollars from taxes as both the "employer" and "employee" of your own micro-business.
• Pitfall: Forgetting to save for taxes. Unlike W-2 employees, taxes are not withheld from your locums paycheck. You must make estimated quarterly tax payments or face penalties.