Model billable time
Account for utilization and unpaid weeks.
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Convert · 3 min
Contract Rate Equivalent
Turn an hourly rate into realistic annual income after utilization, unpaid time, benefits and business costs.
Compare contract work with employment on equal terms.Contract economics
Convert billable time—not calendar time.
Account for utilization, unpaid weeks and the benefits or overhead you fund yourself.
Gross billings$117,300
Employee-equivalent value$97,300
Rate needed for target$94/h
This model gives you 1,380 billable hours per year after utilization and unpaid time.
How it works
A result built for a decision.
Subtract the gap
Include business costs and benefits you must replace.
Set the rate
See the contractor rate required for your target salary.