Contractor Rate Calculator
Work out the charge-out rate you need as a contractor or freelancer. Enter the salary you want to replace, your realistic billable hours and your on-costs, the calculator builds up to an hourly and day rate.
How we estimate this
The classic mistake is dividing a salary by full-time hours, that gives a rate that leaves you worse off than employment. As a contractor you are not billable every hour, and you now pay your own super, leave, insurance, tools and downtime.
Pricing reviewed: November 2026.
Understanding contractor rates in Australia
The classic mistake is dividing a salary by full-time hours, that gives a rate that leaves you worse off than employment. As a contractor you are not billable every hour, and you now pay your own super, leave, insurance, tools and downtime.
A realistic rate takes the income you want, adds on-costs (often 30% or more), spreads it over the hours you can actually bill (commonly 1,200 to 1,500 a year, not 1,900), and adds a margin. That is why contractor rates look high next to an employee's hourly pay but often are not once everything is counted.
Frequently asked questions
How do I work out my contractor rate?
Start from the income you want, add on-costs like super, insurance and unpaid leave (often 30%+), divide by the hours you can realistically bill (not a full 1,900), then add a margin. The calculator does this for you.
Why is a contractor rate higher than an employee's hourly pay?
Because a contractor pays their own super, leave, insurance, tools and downtime, and cannot bill every hour. A rate that just matches an employee's hourly pay actually leaves a contractor worse off.
Are you a accountant / business adviser?
Everyone on this page is working out what contractor rate costs because they are ready to hire. Put your business right beneath the calculator, in your state, so you are who they find. From $50/mo.