Contractor Rate Calculator
Work backwards from the take-home pay you want to the hourly and day rate you need to charge, after tax, your own super, business costs, unpaid leave and time between contracts.
Your rate
Day rate to charge (excluding GST)
$773.08
$101.73 an hour · $850.39 a day including GST
- Billable days a year
- 200 days
- Break-even day rate (no margin)
- $702.80
- Hourly rate including GST
- $111.90
- Income needed a year (excluding GST)
- $154,614.39
- Business costs
- $6,000.00
- Super you pay yourself
- $16,147.02
- Income tax, Medicare and HECS-HELP
- $28,411.52
- Take-home pay
- $90,000.00
- Margin (10%)
- $14,055.85
- At $154,614 a year you’re over the $75,000 GST turnover threshold, so register for GST and add 10% to every invoice. The GST isn’t yours to keep.
Sole trader, Australian resident, 2026–27 tax rates, super you contribute and claim as a deduction. Companies and trusts are taxed differently.
Rates checked 12 October 2026 against the ATO · How we calculate · Calculated in your browser; nothing you enter is sent anywhere.
What your day rate pays for
Each billable day’s rate, split into your take-home pay, tax, super, business costs and margin.
- Your take-home pay $450.00 a day
- Tax and Medicare $142.06 a day
- Your super $80.74 a day
- Business costs $30.00 a day
- Margin $70.28 a day
Your working year: billable and unpaid days
Of the 260 weekdays in a year, only the billable ones earn money, so your rate has to cover the rest.
- Billable days 200 days
- Holidays and sick leave 30 days
- Public holidays 10 days
- Between contracts 20 days
How billable days change the rate you need
The same income spread over 120 to 240 billable days a year (across the bottom). Hover along the line for the rate at any number of days.
- Day rate needed
- You: $773.08 over 200 days
Show as a table
| Billable days | Day rate | Hourly rate |
|---|---|---|
| 120 | $1,289 | $169.61 |
| 130 | $1,190 | $156.58 |
| 140 | $1,105 | $145.39 |
| 150 | $1,031 | $135.66 |
| 160 | $967 | $127.24 |
| 170 | $910 | $119.74 |
| 180 | $859 | $113.03 |
| 190 | $814 | $107.11 |
| 200 | $774 | $101.84 |
| 210 | $737 | $96.97 |
| 220 | $703 | $92.50 |
| 230 | $673 | $88.55 |
| 240 | $645 | $84.87 |
Rates for common income targets
| Take-home pay a year | Income needed (ex GST) | Day rate | Hourly rate |
|---|---|---|---|
| $60,000 | $99,467 | $497.34 | $65.44 |
| $80,000 | $136,232 | $681.16 | $89.63 |
| $100,000 | $172,997 | $864.99 | $113.82 |
| $120,000 | $213,710 | $1,068.56 | $140.60 |
| $150,000 | $279,878 | $1,399.39 | $184.14 |
200 billable days of 7.6 hours, $6,000 of business costs, 12% super and a 10% margin; rates exclude GST.
Billable days matter more than you think
An employee is paid for 260 weekdays a year, including leave and public holidays. A contractor is paid only for the days they bill. On the default settings, 4 weeks between contracts lifts the day rate you need from $702.80 to $773.08.
That’s why rates quoted against employee salaries can look high: they have to cover the unpaid days, the super an employer would pay, and the costs of running a business.
Tax and super rules to know
- Tax: as a sole trader your business income, less expenses, is taxed at individual rates. Set aside tax as you go, or enter PAYG instalments.
- Super: if you’re paid mainly for your labour, the client may have to pay super guarantee for you even though you’re a contractor.
- Personal services income: if most of your income is for your personal skills, some business deductions and the small business income tax offset may not apply.
Sources: Business structures – key tax obligations, ATO, last updated 9 June 2026; Super for independent contractors, ATO, last updated 2 September 2026.
Frequently asked questions
How do I calculate my contractor day rate?
Start with the take-home pay you want, add tax, super and business costs to find the income you need, then divide by the days you can actually bill. With 6 weeks of leave, 10 public holidays and 4 weeks between contracts there are 200 billable days, so $90,000 take-home needs about $773.08 a day, including a 10% margin.
What hourly rate do I need to earn $100,000 as a contractor?
To take home $100,000 after tax and 12% super, with the default costs and 200 billable days of 7.6 hours, you’d charge about $113.82 an hour or $864.99 a day, excluding GST.
How much more should a contractor charge than an employee earns?
There’s no fixed multiple. A contractor’s rate has to cover their own super, leave and public holidays they aren’t paid for, gaps between contracts and business costs, none of which an employee pays for. Enter your own figures above rather than relying on a rule of thumb.
Do I add GST to my contractor rate?
Only if you’re registered for GST, which you must be once your turnover reaches $75,000 a year. Then you add 10% to each invoice and pay it to the ATO, so quote rates excluding GST and keep the GST separate.