Independent contractors face unique challenges: gaps between contracts, no employer benefits, and full tax liability. This calculator accounts for all of it to find a rate that actually sustains your business.
// frequently asked questions
How do I calculate my contractor rate?
Take your target annual income, add taxes, insurance, and business expenses, then divide by realistic billable hours accounting for gaps between contracts. Contractors typically bill 70-80% of a full-time schedule. This calculator does all of this automatically.
How much more should a contractor charge than a permanent employee?
As a rule of thumb, contractors typically charge 1.5-2x the equivalent permanent salary divided by 2000 hours to cover taxes, benefits gap, and non-billable time. This calculator lets you be more precise based on your actual situation.
How do I account for gaps between contracts?
Use the non-billable weeks slider to account for time between contracts. Most contractors plan for 4-8 weeks of gaps per year. The safety buffer adds an additional cushion on top of your minimum rate.