#164 · Salary Tool

Contractor Rate Calculator

Find the hourly rate you need as a contractor or freelancer after taxes and business costs. This estimate is for planning only and is not tax, payroll, legal, or financial advice.

Calculator

Enter pay assumptions
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Salary conversion table

Hourly$0
Daily$0
Weekly$0
Monthly$0
Annual$0

Formula used

Required rate = (desired income + taxes + expenses + buffer) ÷ annual billable hours.

Example calculation

For $80,000 desired net income with 30 billable hours per week, taxes and expenses can push the required rate above a normal salary-equivalent hourly rate.

How to use this calculator

Enter realistic pay, hours, tax, benefit, cost, or policy assumptions. The calculator updates the result card, conversion table, income health score, and interpretation instantly.

Tips to improve the result

  • Do not price contractor work like a full-time salary divided by 2,080 hours.
  • Include unpaid vacation, sick time, admin time, and taxes.
  • Build a margin for gaps between contracts.
  • Compare your rate with the employee-equivalent salary.

What the result means

This tool is designed for quick pay planning and compensation comparison. The rating and income health score simplify the result so users can compare scenarios faster. Always verify payroll, tax, contract, and employment-law details with a qualified source before making a final decision.

FAQ

How do I set a contractor hourly rate?

The Contractor Rate Calculator gives an estimate from your inputs. Actual pay, tax, payroll, contract, and employment rules can vary by country, employer, and policy.

Why is contractor pay higher than employee pay?

The Contractor Rate Calculator gives an estimate from your inputs. Actual pay, tax, payroll, contract, and employment rules can vary by country, employer, and policy.

What are billable hours?

The Contractor Rate Calculator gives an estimate from your inputs. Actual pay, tax, payroll, contract, and employment rules can vary by country, employer, and policy.

Should I include taxes and expenses?

The Contractor Rate Calculator gives an estimate from your inputs. Actual pay, tax, payroll, contract, and employment rules can vary by country, employer, and policy.

What is an underpricing warning?

The Contractor Rate Calculator gives an estimate from your inputs. Actual pay, tax, payroll, contract, and employment rules can vary by country, employer, and policy.

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