Contractor rate calculator
Turn a tech salary into an hourly and daily rate, and find the contract day rate that pays the same once unpaid days and employer costs are counted. It starts from the verified median salary for your role and country; type your own to replace it. Free, no signup.
Contract day rate to match the median Software Engineer salary in United States
$1,080 / day
That is $140 an hour at 8 hours a day, or about $19,000 a month over 210 billable days a year.
Salary
$175,000
= hourly
$84
= daily
$670
Hourly and daily are the plain salary equivalents (2,080 hours, 260 days a year). The day rate adds 30% for what an employer used to pay and spreads it over billable days only.
See contract Software Engineer jobs in United States →The formula
Hourly = salary ÷ 2,080 and daily = salary ÷ 260 are the plain equivalents of a full-time year. Contract day rate = salary × (1 + overhead) ÷ billable days: a contractor is paid only for days they bill, and pays for the leave, pension, insurance and gaps an employer used to cover. Income tax is not included — it depends on your country and how you invoice.
Also: developer salary calculator · resume keywords · salary guides
FAQ
How do I convert a salary to an hourly rate?
Divide the yearly salary by 2,080 (52 weeks of 40 hours). For example, $172,000 a year — the median React Developer salary in United States — is about $83 an hour, or $660 a day over 260 working days.
How much should a contractor charge compared with a salary?
More than the plain hourly equivalent. A contractor is paid only for the days they bill and carries the costs an employer used to pay: paid leave and holidays, sick days, gaps between contracts, pension, insurance and equipment. With 210 billable days and 30% on top, a $172,000 salary needs a day rate of about $1,060.
How many billable days does a contractor have in a year?
About 260 working days, minus holidays and public holidays (20-35), sick days and time between contracts. 200-220 billable days is a common planning figure; set your own in the calculator.
What does the 30% overhead cover?
The part of an employee's cost that does not show up in the salary: employer pension and social contributions, health insurance, paid training, equipment and the admin a contractor now does themselves. It differs a lot by country and contract form, so change it to fit yours. The calculator does not compute income tax.
Where does the salary starting point come from?
It is the median advertised salary for the role and place you pick, from salary ranges employers publish in live job postings (verified ranges only, updated daily). Type your own salary to replace it.