Pay converters
Contractor Daily Rate Calculator
Contractors carry their own operational expenses, taxes, and unbillable gaps. Start from your target net income and calculate the day rate required.
Recommended day rate
US$605
minimum US$550 per day
- Minimum day rate
- US$550
- Hourly equivalent (8h)
- US$75.63
- Monthly income
- US$10,083
- Annual billable revenue
- US$121,000
How the calculator works
Target income and business costs are totaled and divided by realistic billable days. A safety margin covers sick days, bench time, and late invoices.
Formula
Minimum rate = (Target income + Annual expenses) ÷ Billable days
Recommended rate = Minimum rate × (1 + Margin %)
When this is useful
- Transitioning from permanent employment to contracting
- Quoting new consultancy client agreements with confidence
- Validating that your daily rate funds your private pension and insurance
Benchmark Figures
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Frequently asked questions
How many billable days should a contractor assume per year?
Most independent contractors bill between 180 and 220 days per year after accounting for public holidays, vacations, administrative tasks, and project transitions.
What expenses should I factor into my day rate?
Include professional indemnity insurance, accountancy, software subscriptions, equipment, training, workspace, and personal pension contributions.