United States version
How it works
Translate an employee compensation package into a contractor fee target using realistic billable time, without deciding legal employment status.
This is the United States planning view, with monetary inputs and outputs in USD. A currency label does not establish that a tax rate, construction price, coverage rule or legal limit has been verified locally. The inputs and limitations below describe the actual scope.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
7-
?salary=Employee annual salaryMoney · Required · Default: 60,000
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?benefits=Value of employer benefits to replaceMoney · Required · Default: 5,000
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?contractExpenses=Annual contractor expensesMoney · Required · Default: 5,000
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?extraContributions=Additional contractor taxes/contributions already calculatedMoney · Required · Default: 0
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?billableDays=Expected billable daysNumber · Required · Default: 200
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?hoursPerDay=Billable hours per dayNumber · Required · Default: 7
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?riskBuffer=Extra income bufferPercentage · Required · Default: 10
Outputs
3-
requiredRevenueAnnual contractor revenue targetCurrency · Primary output · Currency: USD
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dayRateBreak-even day rateCurrency · Currency: USD
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hourRateBreak-even hourly rateCurrency · Currency: USD
Formula
Required revenue = (salary + replacement benefits + expenses + extra contributions) × (1 + buffer).
Calculations retain numeric precision internally. Displayed values are rounded for readability. Quantities that must be purchased as whole units are rounded up only where the formula explicitly requires it.
Read the inputs before calculating
- Employee annual salary: Enter the quantity described by the label.
- Value of employer benefits to replace: Enter the quantity described by the label.
- Annual contractor expenses: Enter the quantity described by the label.
- Additional contractor taxes/contributions already calculated: Enter the quantity described by the label.
- Expected billable days: Enter the quantity described by the label.
- Billable hours per day: Enter the quantity described by the label.
- Extra income buffer: Enter the quantity described by the label.
Reproducible worked example
The following is a fictional arithmetic example, not a local quote, a verified claimant or a market forecast. Its values are included so the formula can be checked. The form does not automatically confirm any verification checkbox.
| Input | Example value |
|---|---|
| Employee annual salary | 60,000 |
| Value of employer benefits to replace | 5,000 |
| Annual contractor expenses | 5,000 |
| Additional contractor taxes/contributions already calculated | 0 |
| Expected billable days | 200 |
| Billable hours per day | 7 |
| Extra income buffer | 10 |
| Output | Calculated result |
|---|---|
| Annual contractor revenue target | USD 77,000 |
| Break-even day rate | USD 385 |
| Break-even hourly rate | USD 55 |
Interpreting a changed assumption
Start with one complete scenario and change only one input when diagnosing a difference. Recheck units, the period of every rate, whether an amount is recurring or one-off, and whether a cost is already included elsewhere. A larger calculated benefit is not evidence that an assumption is more likely to occur.
Limitations
- Planning calculation, not a tax return, benefit decision, credit approval or legal opinion. No eligibility is inferred from a numeric result.
- Only the stated tax year and expressly supported rule components are included. Entered amounts require independent verification.
- This comparison does not classify a worker or determine IR35, payroll, insurance or employment-law treatment. Paid leave must be reflected in billable days.
Frequently asked questions
What does this Contractor versus Employee Offer result represent?
Translate an employee compensation package into a contractor fee target using realistic billable time, without deciding legal employment status. It applies the displayed formula to your inputs; it does not infer omitted facts.
Are the starting amounts verified United States prices or legal rules?
No. Numeric defaults are illustrative unless an input or dated reference explicitly identifies a researched component. Currency is USD; local quotes, eligibility and unsupported rules must be entered and verified separately.
What must I check before relying on the result?
Planning calculation, not a tax return, benefit decision, credit approval or legal opinion. No eligibility is inferred from a numeric result. Only the stated tax year and expressly supported rule components are included. Entered amounts require independent verification.
Can I compare or share different assumptions?
Change one assumption at a time and use the browser-local project or share controls. A shared URL contains the encoded input values; do not include information you do not wish to disclose.
Sources and reference scope
- US income authority — retrieved 2026-09-24. Use only the expressly supported schedule components; this link does not validate unrelated taxes.
These references support only their stated scope. They are not evidence that every local rule or price needed by the master expansion has been loaded.