Healthcare contractor comparison
Locum Tenens vs Employed Salary Calculator
Compare locum tenens income with employed physician salary after benefits, malpractice coverage, travel, licensing, credentialing time, taxes, and unpaid assignment gaps.
Last updated: July 14, 2026
Quick estimate
Quick Locum Tenens vs Employed Pay Estimate
Compare a locum hourly rate with an employed physician salary package after assignment expenses, benefits value, and a simplified self-employment tax estimate.
This quick calculator is a rough educational comparison only. Locum contracts, malpractice coverage, reimbursement, licensing, and classification details can materially change the result.
Locum Tenens vs Employed: What This Calculator Compares
People searching for a locum tenens vs employed calculator usually want to know whether a higher locum hourly or daily rate is enough to replace a stable employed physician salary. The answer depends on more than gross pay. An employed physician role may include paid leave, employer health benefits, retirement match, CME support, malpractice coverage, payroll tax withholding, and predictable scheduling. A locum tenens role may offer a higher rate, but the physician may need to account for assignment gaps, travel days, credentialing time, licensing, malpractice terms, tax reserves, and benefits replacement.
Use this page for a rough locum tenens pay comparison before you negotiate. Enter a realistic hourly rate, expected weekly hours, assignment weeks per year, and annual expenses. Then compare that with the W-2 salary plus estimated benefits value. If the locum side only wins by a small margin, the W-2 offer may still be stronger once predictability, paid time off, and benefits are considered.
What to Include in a Locum vs W-2 Comparison
W-2 Compensation
Compare salary, shift differentials, paid leave, health benefits, retirement match, employer-paid taxes, and continuing education support.
Locum Gross Pay
Annualize hourly or daily locum pay using realistic assignment weeks, expected shifts, unpaid breaks, and likely utilization.
Assignment Costs
Include travel, lodging gaps, licensing, credentialing, malpractice coverage, agency terms, health insurance, and accounting support.
Physician-Specific Costs That Change Locum Income
Locum tenens pay is often discussed as a high hourly or daily rate, but physicians should check which costs are actually covered by the contract or agency. Malpractice coverage, tail coverage, state licensing, DEA registration, credentialing time, travel days, lodging gaps, and CME time can materially change the effective annual value.
A locum tenens income calculator should also account for assignment timing. A physician may earn a strong weekly amount during an assignment but have unpaid weeks between contracts, onboarding delays, or licensing gaps that lower annualized income.
Locum vs W-2 Inputs That Change the Result
| Input | Why It Matters | Common Mistake |
|---|---|---|
| Assignment weeks | Locum pay can drop quickly if the year has unpaid gaps between contracts. | Assuming 52 paid weeks when only 40-46 are realistic. |
| Travel and lodging | Reimbursement terms vary, and uncovered travel days reduce effective pay. | Counting reimbursed travel as profit or ignoring non-reimbursed costs. |
| Benefits replacement | Health insurance, PTO, retirement match, and CME support can be valuable in W-2 roles. | Comparing locum gross pay against W-2 salary only. |
| Malpractice and licensing | Coverage, credentialing, licensing, and professional costs can vary by contract. | Assuming every locum offer covers every professional cost. |
When a Locum Rate Needs to Be Higher
A locum rate usually needs a larger premium when the assignment is short, travel is frequent, scheduling is uncertain, benefits are weak, or credentialing time is unpaid. A lower premium may be acceptable when housing, travel, malpractice, licensing, and agency support are clearly covered and the schedule is stable.
For a second check, convert the locum offer into a W-2 equivalent using the W2 salary equivalent calculator, then compare the result with the main 1099 vs W2 calculator.
Locum Pay Formula
Planning formula
Estimated locum value = gross locum pay minus assignment expenses, insurance, tax reserves, unpaid time, and gaps between contracts, compared with W-2 salary plus benefits.
A high locum hourly rate can still be weaker than it looks if the role has unpaid credentialing time, inconsistent assignments, expensive travel, or benefits you must replace yourself.
This is an educational estimate only. It is not tax, legal, financial, accounting, healthcare employment, or credentialing advice.
Method and Official Sources
The locum comparison annualizes temporary healthcare contractor pay, subtracts selected assignment expenses and a simplified self-employment tax estimate, then compares that value with an employed salary plus benefits. Contract terms, malpractice coverage, licensing, credentialing, and classification can change the result.
FAQ
How do I compare locum pay with a W-2 job?
Compare annualized locum income with W-2 salary plus benefits, then adjust for travel, licensing, malpractice coverage, health insurance, unpaid time, self-employment tax, and assignment gaps.
What locum expenses should I include?
Consider travel, lodging gaps, licensing, credentialing, malpractice coverage, health insurance, accounting, professional dues, and unpaid time between assignments.
Can this compare nurse, physician, or allied health locum work?
Yes, as a rough pay framework. The specific numbers vary by role, state, agency, specialty, contract terms, and tax situation.
Is this calculator only for physicians?
The page is written with physician locum tenens searches in mind because that is the clearest search intent, but the framework can also help nurses, advanced practice clinicians, and allied health workers compare temporary healthcare pay.
Should I include malpractice and tail coverage?
Yes. Compare whether malpractice and tail coverage are provided, reimbursed, or paid out of pocket because coverage terms can change the effective value of a locum offer.
Is locum tenens always 1099 income?
Not always. Locum arrangements vary by employer, agency, and contract structure. This page is a rough pay comparison guide, not tax or employment classification advice.
Does this decide whether a role is W-2 or 1099?
No. Worker classification depends on the contract and applicable rules. Consult a qualified professional for classification questions.