Calculator Comparison

Contractor Hourly Rate Calculator vs Salary Calculator

Not sure which calculator to use? Here's a side-by-side comparison of the Contractor Hourly Rate Calculator and Salary Calculator to help you pick the right one for your needs.

Contractor Hourly Rate Calculator

Salary & Income

Calculate the equivalent contractor hourly rate that matches full-time employee compensation, accounting for self-employment taxes, benefits, and expenses.

What you enter

Desired Equivalent Salary
Self-Employment Tax Rate (%)
Annual Benefits Cost
Annual Business Expenses
Billable Hours Per Year

What you get

Recommended Hourly Rate(primary)
Total Annual Revenue Needed
Effective Take-Home Salary
Self-Employment Tax Burden

Includes visual pie chart breakdown

Use Contractor Hourly Rate Calculator

Salary Calculator

Salary & Income

Convert your salary between different pay periods including annual, monthly, biweekly, weekly, daily, and hourly rates.

What you enter

Annual Salary
Hours Per Week
Paid Weeks Per Year

What you get

Hourly Rate(primary)
Daily Rate
Weekly Pay
Bi-Weekly Pay
Monthly Pay

Use Salary Calculator

Key Differences

Feature	Contractor Hourly Rate Calculator	Salary Calculator
Category	Salary & Income	Salary & Income
Inputs	5 required fields	3 required fields
Outputs	4 results	5 results
Chart	pie chart	No chart
FAQs	3 answered	3 answered

Input Comparison

Only in Contractor Hourly Rate Calculator

Desired Equivalent Salary
Self-Employment Tax Rate (%)
Annual Benefits Cost
Annual Business Expenses
Billable Hours Per Year

Only in Salary Calculator

Annual Salary
Hours Per Week
Paid Weeks Per Year

Which Calculator Should You Use?

Use the Contractor Hourly Rate Calculator if you need to:

Calculate recommended hourly rate
When you know your desired equivalent salary and self-employment tax rate (%)
Want a visual pie chart breakdown

Use the Salary Calculator if you need to:

Calculate hourly rate
When you know your annual salary and hours per week

Frequently Asked Questions

How much more should a contractor charge vs salary?

Contractors should typically charge 25-50% more than the equivalent hourly salary rate. This covers self-employment tax (15.3%), health insurance, retirement contributions, and business expenses.

What is the self-employment tax?

Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on net earnings. As a W-2 employee, your employer pays half. As a contractor, you pay the full amount.

How do I convert annual salary to hourly?

Divide annual salary by 2,080 (52 weeks x 40 hours). For example, $65,000 / 2,080 = $31.25 per hour. Adjust the hours if you work more or less than 40 hours per week.

What is the average salary in the US?

The median household income in the US is approximately $75,000 as of 2025. Individual median income is about $45,000. These vary significantly by state, profession, and experience level.

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Bottom Line

Choose the Contractor Hourly Rate Calculator if you need to calculate recommended hourly rate. Use the Salary Calculator if you need to calculate hourly rate. Both calculators are free and require no sign-up.

Use Contractor Hourly Rate Calculator Use Salary Calculator

Feature

Contractor Hourly Rate Calculator

Salary Calculator

Use the Contractor Hourly Rate Calculator if you need to:

Calculate recommended hourly rate
When you know your desired equivalent salary and self-employment tax rate (%)
Want a visual pie chart breakdown

Use the Salary Calculator if you need to:

Calculate hourly rate
When you know your annual salary and hours per week

Frequently Asked Questions

How much more should a contractor charge vs salary?

Contractors should typically charge 25-50% more than the equivalent hourly salary rate. This covers self-employment tax (15.3%), health insurance, retirement contributions, and business expenses.

What is the self-employment tax?

Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on net earnings. As a W-2 employee, your employer pays half. As a contractor, you pay the full amount.

How do I convert annual salary to hourly?

Divide annual salary by 2,080 (52 weeks x 40 hours). For example, $65,000 / 2,080 = $31.25 per hour. Adjust the hours if you work more or less than 40 hours per week.

What is the average salary in the US?

The median household income in the US is approximately $75,000 as of 2025. Individual median income is about $45,000. These vary significantly by state, profession, and experience level.