Contractor Rate Lab

Independent work economics

Price the work—not just the hours.

Build a sustainable contractor rate, turn it into a defensible project quote, and check the real economics before you send the proposal.

Calculate my rate Build a project quote
No sign-up Local calculations Transparent formulas

Core calculator

Contractor rate calculator

Start with either a desired after-tax take-home amount or a comparable employee salary. The calculator adds editable allowances for benefits, overhead, nonbillable capacity, payment losses, and a pricing cushion.

Your assumptions

Every default is editable. Use figures that reflect your own business.

Calculated in browser
1 Income goal
Goal method
$
What you want available after the planning tax reserve.
%
A planning reserve—not a tax calculation.
2 Business economics
%
Health coverage, retirement contributions, disability coverage, and other protections.
$
Software, equipment, insurance, accounting, marketing, workspace, and similar costs.
BLS
Public-data context

In March 2026, U.S. private-industry benefits were 30.1% of total employer compensation—about 43.1% relative to wages. The default here is lower because paid time and several protections may be modeled elsewhere. Adjust it deliberately. View BLS source.

3 Realistic capacity
After vacation, holidays, illness, and downtime.
Hours you can realistically invoice.
Used only for the suggested day rate.
Advanced pricing allowances
%
Resilience, reinvestment, and operating cushion.
%
Processing fees, write-offs, and collection friction.
%
Negotiation and estimation room above the floor.

Turn the rate into a proposal

Project quote calculator

Price estimated labor, direct costs, scope uncertainty, rush work, payment fees, and an upfront deposit without hiding the assumptions.

Project assumptions

Use a written scope and estimate hours at the task level whenever possible.

Calculated in browser
1 Labor and scope
$
Use the target rate above or another defensible project rate.
Include delivery, meetings, revisions, and project administration.
%
Allowance for uncertainty—not an excuse for an undefined scope.
2 Direct costs and premiums
$
Travel, licenses, materials, rentals, or other pass-through costs.
$
Expected amount paid to external specialists.
%
Optional premium applied to labor for compressed timelines.
%
Commonly tied to scheduling or project commencement.
Payment processing allowance
%
Use the rate in your processor agreement.
$
For the modeled client payment.

Complete pricing toolkit

Use the right calculator at each stage

Estimate the rate before selling, structure recurring work, review actual performance, and improve the next quote.

NEW

1099 vs W-2

Compare salary, benefits, contractor costs, and a break-even 1099 hourly rate.

Compare offers → NEW

Salary ↔ contractor rate

Convert compensation in either direction using benefits, overhead, and billable capacity.

Convert compensation → NEW

Freelance hourly rate

Work backward from desired take-home income, costs, and realistic utilization.

Build your rate → 02

Monthly retainer

Price committed capacity, support time, discounts, fees, and overages.

Open calculator → 03

Effective hourly rate

Measure what a completed engagement truly paid after every hour and cost.

Open calculator → 04

Payment fee calculator

Estimate net proceeds or gross up an invoice to cover processing fees.

Open calculator → 05

Project profitability

Compare planned and actual hours, margin, break-even price, and target price.

Open calculator →
01 / TRANSPARENT

Every formula is published

See how income goals, capacity, fees, and margin flow into each result. No opaque “AI price” is presented as fact.

02 / PRIVATE

Calculations stay in the browser

The site does not require an account. Calculator math runs in your browser; analytics, advertising, affiliate tracking, and forms may separately process site interaction data as described in the Privacy Policy.

03 / PRACTICAL

Defaults are starting points

Public data and common business conventions inform the examples, but your actual costs, taxes, market, and risk remain decisive.

Frequently asked questions

What the calculator can—and cannot—tell you

What should I enter as a tax reserve?
Use an intentionally conservative planning percentage based on your jurisdiction and situation, then confirm it with a qualified tax professional. The calculator does not determine tax liability.
Why are billable hours lower than total working hours?
Independent professionals spend time on sales, proposals, administration, professional development, scheduling, and unpaid revisions. Enter hours that can realistically be invoiced, not every hour you expect to work.
Is the target quoting rate a market rate?
No. It is a sustainability estimate based on your inputs. Market positioning, specialization, urgency, value to the client, and competitive alternatives may justify a higher or lower quote.
Does changing the currency convert values?
No. The currency selector changes formatting only. Enter every amount in the same currency.
Are my numbers saved or transmitted?
Calculator math is performed in your browser and inputs may be saved in local storage for convenience. The site may separately use analytics, advertising, affiliate tracking, and other third-party technologies as described in the Privacy Policy; avoid entering sensitive personal information.