1. What is the Contract Rate Calculator?

The Contract Rate Calculator helps freelancers and contractors in Australia and New Zealand determine their hourly rate based on annual salary, costs, and working hours. It ensures you account for all expenses when setting your contract rates.

2. How Does the Calculator Work?

The calculator uses the contract rate equation:

Where:

• \( Salary \) — Annual salary in AUD
• \( Costs \) — Annual business costs in AUD
• \( Hours \) — Annual working hours

Explanation: The equation calculates the minimum hourly rate needed to cover both your desired salary and business costs based on your working hours.

3. Importance of Rate Calculation

Details: Accurate rate calculation is crucial for contractors to ensure they cover all expenses and earn a sustainable income while remaining competitive in the market.

4. Using the Calculator

Tips: Enter your desired annual salary in AUD, all business costs in AUD, and your planned working hours per year. All values must be valid (positive numbers, hours > 0).

5. Frequently Asked Questions (FAQ)

Q1: What costs should I include?
A: Include all business expenses - equipment, software, insurance, taxes, superannuation, office space, etc.

Q2: How many hours should I use?
A: Use your actual billable hours, not total working hours. Typically 1000-1800 hours/year for full-time contractors.

Q3: Should I include GST?
A: This calculator shows ex-GST rates. Add 10% for GST-registered businesses in Australia.

Q4: How does this differ for NZ contractors?
A: The calculation is the same, but consider NZ-specific costs like ACC levies and GST rate of 15%.

Q5: Is this rate before or after tax?
A: This calculates gross rate before tax. You'll need to account for tax obligations separately.