Contractor Day Rate to Salary Calculator
Convert daily contracting rates into true equivalent permanent annual salaries accounting for unpaid leave, pension matching, and benefits.
Contractor Day Rate to Permanent Equivalent Salary Calculator
Convert daily contractor rates to equivalent permanent employee salaries after accounting for PTO, unpaid bench time, and employer benefits.
Typically 44-46 weeks (excludes PTO & bench).
Health, 401k/pension match, bonus.
Offers equivalent economic value when accounting for paid holidays and corporate benefits.
Comparing Contracting vs Permanent Employment
Transitioning between contracting and permanent roles requires more than simple hourly math. Independent contractors shoulder the burden of unbilled downtime, healthcare expenses, self-employment taxes, and retirement funding.
Key Features
Unpaid Bench Time Modeling
Accounts for the realistic 44 to 46 billable weeks worked each year.
Corporate Benefits Loading
Quantifies employer pension contributions, private medical insurance, and paid sick leave.
Common Use Cases
- ✓Contractors Weighing Full-Time Offers
Determine the minimum permanent base salary required before accepting a corporate employment contract.
- ✓Hiring Managers & Recruiters
Benchmark market compensation packages when hiring technical and executive contractors.
Frequently Asked Questions
What is the rule of thumb to convert day rate to salary?
A common industry rule of thumb is to multiply your day rate by 200 or 220 to determine an equivalent permanent salary. For example, a $700/day rate corresponds to roughly $140,000 to $154,000 in permanent base pay.
Why can't you multiply day rate by 260 working days?
Multiplying by 260 assumes 52 weeks of 100% continuous billing without taking any vacations, bank holidays, sick days, or downtime between client projects.
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