Free Contractor Rate Calculator Australia
Convert your salary to a day rate (and back) with super, leave loading and tax factored in.
Quick Answer
Replacing a $100,000 salary as a contractor typically needs a day rate of $750-$850 (excluding GST), roughly 1.5 times the equivalent daily salary. That gap covers the 12% super guarantee, four weeks annual leave, public holidays and sick days an employer normally pays for you, plus realistic downtime between contracts. Enter your own numbers below for an exact figure. General info only, not financial advice.
Day Rate
$585.00
Hourly Rate
$73.13
Covers super (12%), leave, sick days, downtime & overheads
All rates ex-GST • Instant results • Mobile ready
Your Required Rate
Next step
Invoice a client at this rate
Open the free invoice maker with $585.00 a day (ex GST) already filled in. Add your ABN and the client, then download the PDF. No sign-up needed.
Make the invoiceGet your breakdown as a PDF
Free PDF report of the numbers above.
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Rate-Setting Tips
- Always quote rates excluding GST. Add 10% on invoices if registered.
- Most contractors only bill around 200 days a year, not 260.
- A common shortcut: day rate ≈ salary ÷ 220 × 1.5. Our maths is more precise.
Premium Australian Business Intelligence
Contractor Rate Statement Report
Contractor rate analysis based on 2026-27 settings: 12% super guarantee, your leave, sick-day and downtime assumptions. All rates exclude GST.
Scenario Parameters
Financial Analysis
This document provides calculated estimates based on public Australian Taxation Office (ATO) guidelines and typical business parameters for the 2024-2026 financial years. AusCalc provides these models for strategic planning purposes only. These figures do not constitute personal financial, legal, or professional tax advice. Actual results depend on individual tax structure, deductions, and legislation changes. We mandate that you verify these projections with a Register Tax Agent or Financial Advisor before executing business strategies.
Turn your day rate into an invoice, with the tax to set aside worked out.
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The Complete Guide to Setting Your Contractor Rate (2026-27)
How This Contractor Rate Calculator Works
The fundamental mistake contractors make is dividing a salary by 260 weekdays. An employee on $100,000 receives far more than $100,000 of value: their employer also pays 12% superannuation guarantee, 4 weeks of annual leave, around 10 public holidays and 10 days of personal leave. All while covering equipment, insurance and training. A contractor must fund every one of those from their own rate, and must also absorb unpaid downtime between contracts.
This calculator builds your required annual revenue (salary + 12% super + business overheads), then divides it by your realistic billable days. The 260 weekday base minus leave, public holidays, sick days and downtime. The result is the minimum day rate and hourly rate that genuinely replaces your target salary. The inverse mode runs the same maths backwards, then applies current 2026-27 ATO tax brackets, the 2% Medicare levy and the Low Income Tax Offset to show your estimated after-tax position.
Worked Example: Replacing a $100,000 Salary
1. Build the revenue target
$100,000 salary + $12,000 super (12%) + $5,000 overheads = $117,000
2. Count real billable days
260 − 20 leave − 10 holidays − 10 sick − 20 downtime = 200 days
3. Divide
$117,000 ÷ 200 = $585/day → $73.13/hour (8-hr day), ex GST
Note that $585 is the break-even rate. It replaces the salary with zero margin for profit, rate negotiation buffer, or extra downtime. Most advisers suggest adding a healthy margin on top of break-even, which is why market day rates for a $100k-equivalent role commonly sit in the $750-$850 range referenced above.
Who Should Use This Tool?
This calculator is built for Australian IT contractors, consultants, tradies quoting day work, freelance designers and developers, locums, and any employee weighing up a move to contracting. It is equally useful in reverse: if a recruiter offers you "$900 a day", the inverse mode tells you in seconds what that really means as a salary package. Usually a much smaller premium than it first appears.
What a Contractor Self-Funds (2026-27)
- Superannuation Guarantee12% of base salary
- Annual Leave4 weeks (20 days)
- Public Holidays~10 days (varies by state)
- Personal / Sick Leave10 days
- Typical Overheads$3,000-$10,000/yr (insurance, gear, software, accounting)
Frequently Asked Questions (FAQ)
How do I convert a salary to a contractor day rate in Australia?
Add the costs an employer normally covers. 12% superannuation, 4 weeks annual leave, public holidays and sick leave. Plus downtime between contracts and business overheads, then divide by your realistic billable days. For a $100,000 salary that typically lands between $750 and $850 per day excluding GST, roughly 1.5 times the equivalent daily salary.
Why is a contractor day rate so much higher than a salary?
Contractors self-fund everything an employer provides: 12% super, paid annual leave, public holidays, sick days, insurance, equipment and training. They also absorb downtime between contracts. A day rate that looks 40-60% above the equivalent salary often produces the same take-home pay.
Should I quote my contractor rate including or excluding GST?
Always quote excluding GST. If you are registered for GST (compulsory above $75,000 turnover) you add 10% on top of your rate on each invoice and remit it to the ATO via your BAS. It is never part of your income.
How many billable days does a contractor have per year?
A full-time year is 260 weekdays. After 4 weeks annual leave (20 days), about 10 public holidays, 10 sick days and 4 weeks of downtime between contracts, most contractors bill around 200 days per year. Using 260 days when setting your rate is the most common pricing mistake.
What is a day rate of $800 worth as a salary?
At roughly 200 billable days a year, $800 per day generates about $160,000 of revenue. After typical overheads and setting aside the 12% super an employer would have paid, that is broadly equivalent to a $135,000-$140,000 salary package. Not $208,000 as a naive 260-day multiplication suggests.