Career · official-source review · reviewed 2026-10-26
An hourly contractor rate and a salary are not comparable until benefits, paid leave, and unpaid weeks are counted.
Turn a salary, benefits share, paid leave, and a contractor rate into two loaded hourly figures.
Anyone choosing between an employee role and a contract role with an hourly rate.
Use the source document or official route that applies to your situation. This guide does not contact another person or verify external information.
Add the employer share of health cover, retirement match, and other benefits to the salary.
Convert paid days off to work weeks. Twenty-five days is five weeks.
Count the unpaid weeks a contractor must cover: holidays, admin, and time between contracts.
Divide the loaded employee cost by the hours actually paid for, not by a full 52 weeks.
The App shows the annual contractor pay and the difference from the loaded employee cost.
An $85,000 salary with 28 percent benefits and five weeks of paid leave is $57.87 an hour. A $65 contract rate over 48 weeks is $124,800, or $16,000 more.
Use your own source and details. The example is not a record about a real person or organization.
Two comparisons with the same method. Both are examples.
Both cases are examples, not records about a real person. The bars show the same numbers the free App computes.
U.S. Small Business Administration · reviewed 2026-10-26
What this source supports: Freelance rates must cover taxes, expenses, downtime, and profit, not just desired take-home pay.
Source limit: This computes a floor rate; market rates in your field may differ.
These sources support the statements above. They do not show that every person needs this guide. They do not show a specific result.
This guide compares the numbers you enter. It does not decide which work is better or value unpaid time.
This computes a floor rate; market rates in your field may differ.
Use current instructions from the responsible organization. This guide is a planning aid, not an official decision or a substitute for qualified advice.
Turn a salary, benefits share, paid leave, and a contract rate into two loaded hourly figures.
This App compares the numbers you enter. It does not decide which role is better or value unpaid time.
You enter every number yourself. The sources support the method and the limits. They do not produce a result for your specific case. Keep the original documents next to the sheet you build.
The App computes the worked example with your own numbers, in your browser.
APP 1
Turn a salary, benefits share, paid leave, and a contract rate into two loaded hourly figures.
Free · no account · no upload
Open Contractor Hourly vs Employee RateThe App runs in this browser. It does not send or save entries. Copy, download, or print only when you choose.
This guide uses short, direct instructions as an ASD-STE100-style writing target. It is not a formal certification.
Companion App: Contractor Hourly vs Employee Rate. It runs in this browser and does not upload your entries.
This guide is edited for clarity and checked against the sources it links. It is not a substitute for official instructions or qualified advice. A linked source does not show that every person needs this guide.