Financial calculator
Salary vs Contractor Calculator
Use this calculator when you want to estimate what contractor rate would match an employee package after taxes, benefits, overhead, and unpaid time.
Compares employee compensation against contractor pricing on a more realistic basis.
Useful for freelance negotiations, consulting offers, and self-employment decisions.
Surfaces how benefits, overhead, and non-billable time change the hourly target.
Quick Guide
Salary vs Contractor Calculator
Use this calculator when you want to estimate what contractor rate would match an employee package after taxes, benefits, overhead, and unpaid time.
- Compares employee compensation against contractor pricing on a more realistic basis.
- Useful for freelance negotiations, consulting offers, and self-employment decisions.
- Surfaces how benefits, overhead, and non-billable time change the hourly target.
FAQ
Why is contractor pricing often higher than expected?
Because contractors usually cover their own taxes, benefits, overhead, unpaid time, and business risk, all of which need to be reflected in the rate.
What assumption matters most?
Billable hours often have the biggest effect. Fewer realistic billable hours mean the required rate has to rise.
When is this most useful?
It is especially helpful when you are deciding between employment and self-employment or negotiating a consulting arrangement.