Salary to Contractor Rate Calculator
Convert a permanent salary into an equivalent day or hourly contracting rate, accounting for tax, super, leave and utilisation.
Equivalent day rate needed
$229
Underlying net annual income$50,280
Billable days per year220
Turning a salary into a fair contracting rate
Simply dividing an annual salary by roughly 220 working days badly understates what you need to charge as a contractor. You're giving up the 12% Superannuation Guarantee, paid annual and personal leave, public holidays, and any employer-funded insurance — and picking up GST administration, your own super funding, and time between contracts that isn't billable.
This calculator builds those factors back in, so the rate it suggests reflects what you'd actually need to charge to be no worse off than the salaried role you're comparing it to.
How to use this calculator
- Enter the annual salary (or package) you're converting from
- Set your expected utilisation — how many weeks a year you expect to actually bill
- Choose whether GST should sit on top of the rate or be absorbed into it
- Review the suggested day rate and hourly rate
