Rate Calculator

Transitioning from being an employee to being a contractor can take some thought. For example, how does an annual salary as an employee translate to an hourly rate as a contractor? Let us help you figure that out! Just enter in a few details below to find out what hourly rate you should target.


Annual salary you would like to target

Number of days you’d like to take off each year

        Will you be an employee of a company or will you be self-employed (either 1099 or through your own company)?
Expected monthly health insurance premiums you will have to pay to be insured
Previous employer match in 401K program, assuming you want your total contributions to remain the same
What % of the year you expect to work, accounting for time between positions. Suggestion is to use 80% to account for unforseen lapse in work
Contracting Rate:
Working Hours: 2080 - (Time off * 8)
Base Rate: Salary / Working Hours
Benefits & Taxes: (Health*12) + (Salary*401K match) + (Salary*7.65% if self employed)
Rate after Benefits & Taxes: Base Rate + ((Benefits & Taxes)/Working Hours)
Contracting Rate Inclusive of Capacity: Rate After Benefits & Taxes / Annual Capacity