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Contractor Pay Calculator (Australia)

Work out what price you should charge per hour

Calculate how much you’re worth

How do you calculate the price and rate for your service? How do you ensure you that you are charging enough to pay for the tax, expenses and shortfalls as a contractor?

The most obvious and easiest way is to find what the market rate is per hour. However, not all market rates are easily determined and not all market rates will ensure that you are not left out of pocket more than being an employee.

As an employee in Australia, employers will pay for your superannuation, taxes, work-related expenses, holidays and leave.

In most cases when you become a contractor, you will need to pay for your own superannuation, taxes, work-related expenses, holidays and leave. This is one reason why contractors get a higher pay rate than permanent employees.

Working out if your contractor rate takes into account all the extra costs can be quite difficult!

Use the calculator below to help you decide if you are getting the right rate as a contractor. This calculator will work out the bare minimum you should charge so you are not out of pocket as a contractor.

We also have a detailed guide to help you work out the rate you should be charging your clients. You can gain access to the detailed guide at the end of the calculator.

HOW MUCH SHOULD YOU CHARGE AS A CONTRACTOR?

Estimate the hourly contractor rate using this tool.

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Generating our Guide now!

Current pay rate as an employee

To work out your current rate per hour. Divide your annual salary by the total hours of work in a year.

Drag the slider to adjust the rate per hour

Example
$120,000 salary divided by 2080 hours (40 hour week x 52 weeks) = $58 per hour

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Work Entitlements

Check the boxes below if you were entitled to the following while working as an employee:




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Estimated Costs as a Contractor

Enter the estimated costs each year

Average cost varies depending on industry. Usually around $600-$1500.

Average cost varies depending on industry. Usually around $700-$1,200.


Varies depending on industry. Input your estimate.

Varies depending on industry. Input your estimate.


Varies depending on industry. Input your estimate.


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Superannuation

Is superannuation added on top of your salary/wage (base salary plus superannuation)


Note: leave unchecked if the salary/wage includes superannuation this means that your salary was packaged

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Goods and Service Tax (GST)

Check the box if you will be registered for GST


You must be registered for GST if you expect to turnover more than $75,000 for the year.

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Pricing Calculator

Estimated hourly rate

Summary of Calculation

DescriptionAmountQuantityRate
Discount
Contractor Rate Per Hour

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Disclaimer: Many of the comments above are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to verify the applicability to their own circumstances. Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as an indication only. It doesn’t take into account all circumstances and they are neither a quote or guarantee of your rate as a contractor.