two hundred days at fifteen thousand
- Day rate
- ₹15,000
- Billable days a year
- 200
- Business expenses
- ₹1,50,000
- Value of benefits a salary would give, as a share
- 15%
Equivalent salary₹24,78,261
28,50,000 / 1.15, worked by hand
Open this exampleSalary & HRfreelance
Day Rate to Salary Calculator
A contractor day rate expressed as the salary it is really worth. Billable days and the benefits a salary carries are what make the two comparable, and both work against the headline rate.
Also called: contract day rate to salary, freelance day rate.
Equivalent salary
₹24,78,261
₹24,78,261. Billing 15,000 for 200 days gives ₹30,00,000, and after 1,50,000 of costs and the 15% a salary would add in benefits, that is the comparable figure.
Gross billings
₹30,00,000
After expenses
₹28,50,000
Benefits a salary would add
₹3,71,739
Days you must bill to match a given salary
165.22
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
Method and background
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
Multiply the rate by days actually billed, take off business expenses, then divide by one plus the share a salary adds in benefits. Two hundred billable days out of about 250 working days is a good year for a contractor, and a salary quietly includes health cover, retirement contributions and paid leave that the day rate has to buy separately.
equivalent salary = (day rate * billable days - expenses) / (1 + benefits share)- d
- Billable days (days)
- R
- Day rate (currency)
- b
- Benefits share of salary (decimal)
Worked examples
Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
no benefits adjustment leaves the net
- Day rate
- ₹15,000
- Billable days a year
- 200
- Business expenses
- ₹1,50,000
- Value of benefits a salary would give, as a share
- 0%
Equivalent salary₹28,50,000
boundary
Open this exampleno billable days earns nothing
- Day rate
- ₹15,000
- Billable days a year
- 1
- Business expenses
- ₹1,50,000
- Value of benefits a salary would give, as a share
- 15%
Equivalent salary-₹1,17,391
degenerate case
Open this exampleMethod and limits
What it assumes
- Billable days exclude holidays, illness, admin and gaps between contracts.
What it deliberately does not model
- Tax treatment of contracting versus employment differs by market and is not applied.
- It does not price the security of a permanent contract.
Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator
Frequently asked questions
- How many days should I assume?
- Two hundred is a reasonable planning figure. It leaves room for holidays, illness, and the weeks between engagements that nobody bills for.