Contract vs salary

More about: Contract vs salary

What it calculates

The “Contract vs salary” calculator computes Contract ahead by (per year) in $ from 7 parameters: monthly gross salary ($), tax on salary (%), contract hourly rate ($), billable hours per week (h), billable weeks per year, tax on contract income (%), own costs per year (insurance, equipment) ($).

A handy everyday calculator for daily tasks.

Example calculation

With parameters Monthly gross salary = 150,000 $, Tax on salary = 13 %, Contract hourly rate = 1,200 $, Billable hours per week = 35 h, Billable weeks per year = 46, Tax on contract income = 6 %, Own costs per year (insurance, equipment) = 60,000 $ the result is 190,080 $ (Vacation and sick days are unpaid on contract — reflect this in the weeks).

How to use

1. Enter monthly gross salary, tax on salary, contract hourly rate, billable hours per week, billable weeks per year, tax on contract income and own costs per year (insurance, equipment) — each field above is adjustable with a slider.
2. Contract ahead by (per year) ($) is calculated automatically as you type.
3. Check the worked example below to see the formula applied to real numbers.
4. Copy the result or bookmark this calculator.

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