Salary vs contractor day rate calculator
A day rate looks bigger than a salary until you count what the salary includes. An employee is paid for annual leave, sick leave and public holidays, and gets super on top. A contractor is paid only for days worked and covers their own leave, super and costs. This calculator puts the two on the same footing.
What it compares
- The day rate that matches a salary, or the salary that matches a day rate.
- Weeks of leave, sick days, public holidays and gaps between contracts.
- Super, which an employer pays on top and a contractor funds themselves.
- Fringe benefits and your own business costs.
How to use it
- Enter the salary or the day rate you are comparing.
- Set how many weeks of leave, sick days and gaps you expect in a year.
- Add any fringe benefits or business costs.
- Read the result: the matching rate and the pay after tax for each option.
The tax figures use the same tables as the take-home pay calculator. GST, insurance, an accountant and tax paid in instalments are not included. This is general information, not financial, tax or legal advice.
Common questions
Why is a contractor day rate higher than a salary?
Because it has to cover the leave, public holidays, super and costs that an employer pays for. The calculator shows the day rate that gives you the same result as a salary.
Does the calculator include GST?
The result shows a figure with GST for reference. GST is not part of your income, so it is not included in the pay figures.
Are fringe benefits included?
Yes. Enter their value and the calculator counts them, including fringe benefits tax paid by the employer.
Can I compare two day rates?
Enter each in turn and compare the results. The summary shows the yearly figure for each.