Day Rate to Salary Calculator
Convert a contractor or freelancer day rate into an equivalent yearly and monthly salary.
How it works
Yearly = day rate × billable days per week × working weeks per year
Contractors are not paid for holidays, sick days or gaps between contracts, so working weeks are fewer than 52. Lowering the weeks worked gives a more realistic take-home comparison to a salaried job.
Worked example
At $400/day, 5 days a week for 46 weeks, the equivalent is about $92,000 a year.
Frequently asked questions
Why not use 52 weeks?
Because no one bills every week. Subtract holidays, admin time and bench time — 44–48 weeks is typical.
Does this equal an employee salary?
Not exactly — contractors cover their own taxes, insurance and benefits, so a contract rate should be higher than the salaried equivalent.
Related calculators
This is an educational estimate, not financial advice. Confirm exact figures with your lender, employer or a licensed advisor.