Free browser tool
Contractor Rate Calculator
Work out an hourly rate that covers income goals, expenses, taxes, and billable utilization.
!
This tool is for pricing planning only. Your actual rate should reflect market demand, taxes, and contract structure.
Calculator
Results update as you type
Hourly rate
$116.26
Target revenue
$156,250.00
Billable hours
1344
Working weeks
48
Example
A contractor aiming for $110,000.00 a year with a 25% tax buffer can price hourly work with more confidence.
Formula
The math behind the result
Hourly rate = target revenue / billable hours. Target revenue includes expenses and a tax buffer.
How it works
A clean flow from input to answer
- 1Enter your income goal and business expenses.
- 2Set tax buffer, vacation weeks, and billable utilization.
- 3Use the hourly rate as a pricing baseline.
FAQ
Common questions
How is this different from freelance rate?
It focuses more on contractor pricing and tax buffer planning.
Can I use it for consulting work?
Yes. It fits consulting and contract work well.
Does it include non-billable time?
It uses billable utilization as the main adjustment.
Does it store my numbers?
No. Everything stays local.
Can it help me avoid underpricing?
That is exactly the point.