Target Day Rate Calculator
Work backwards from the after-tax income you want to the day or hourly rate you need to charge, including GST and super.
Gross income needed
$59,588
Net annual income$50,000
Income tax$8,396
Medicare Levy$1,192
Total deductions$9,588
Effective tax rate16.1%
Working backwards from the income you want
Most contractors ask the question the wrong way around — starting from a rate they've heard others charge, rather than the after-tax income they actually need. This calculator flips that: tell it the take-home income you want, and it works forward through tax, GST and self-funded super to the day or hourly rate you'd need to charge to get there.
How to use this calculator
- Enter the after-tax annual income you want to end up with
- Enter your business expenses and how much super you plan to self-fund
- Set a realistic number of billable days for the year
- Review the required day rate and hourly rate, with GST shown separately if you're registered
