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.
$2,478,260.87. Billing 15,000 for 200 days gives $3,000,000.00, and after 150,000 of costs and the 15% a salary would add in benefits, that is the comparable figure.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
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 United States 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)
Method 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 · United States · 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.