Salary Calculator

Enter a rate in any period and see it in all the others at once. Because the conversion depends on how many hours and weeks you actually work, both are adjustable - which is what makes it possible to compare a contractor day rate with a salaried job honestly rather than by multiplying by 52 and hoping.

The quick mental conversion

At 40 hours and 52 weeks, double the hourly rate and add three zeros: 30 an hour is roughly 60,000 a year. It is accurate to within about 4% and good enough to size up a job advert. It stops working the moment unpaid leave is involved.

Comparing a contract rate with a salary

They are not comparable at face value. A salary usually includes paid leave, employer pension contributions, sick pay, and no gaps between engagements. Setting working weeks to 46 shows the effect of six unpaid weeks; everything else - pension, insurance, the risk of a quiet month, the cost of your own equipment and accounting - has to be added on top. A common rule of thumb is that a contract rate needs to be 25 to 50% above the salaried equivalent to actually break even.

These are gross figures

No tax, no deductions. Take-home depends on your country, region, filing status, pension contributions and allowances, and no general calculator can know those.

Frequently asked questions

How do I turn an hourly rate into an annual salary?

Multiply by hours per week and then by weeks worked per year. At 40 hours and 52 weeks, the shortcut is to double the hourly rate and add three zeros: 25 an hour is roughly 50,000 a year. The shortcut breaks down as soon as unpaid leave enters the picture.

Why should a contractor rate be higher than the salaried equivalent?

Because unpaid time off, employer pension contributions, health cover, sick pay and gaps between contracts all come out of it. Setting working weeks to 46 or 44 rather than 52 shows the effect of that unpaid time; the rest has to be added on top as a margin.

Is this before or after tax?

Before. These are gross figures. Take-home pay depends on your country, region, filing status, pension contributions and allowances, none of which a general calculator can know.

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