How our tools work

Every calculation on SalaryParity is built on cited public data with documented formulas. This section explains the methodology, assumptions, and limitations behind each tool.

Salary Reality Check

How we adjust for cost of living, calculate take-home pay after taxes, benchmark against market data, and generate percentile rankings.

Sources: Numbeo 2025, BLS OES May 2024, Levels.fyi, IRS 2024 brackets

Freelance Rate Calculator

How we calculate minimum viable hourly rate from income goals, business expenses, self-employment tax, and realistic billable hours.

Sources: IRS self-employment tax rules, industry rate surveys

LLC vs Sole Proprietor

How we calculate tax liability under each business structure, including the S-Corp election savings formula and break-even threshold.

Sources: IRS Publication 334, Form 2553 guidance, state revenue publications

Last Day Calculator

How notice periods are calculated, how we determine the last working day, and how PTO payout is estimated by state policy.

Sources: State labor law summaries, IRS daily wage calculation standards

Contract Red Flag Scanner

How the AI analysis works, what the scanner looks for, how severity levels are assigned, and the known limitations of AI contract review.

Model: Anthropic Claude (claude-haiku). Input not retained after analysis.