Day rate calculator: day rate to annual salary
To compare a contract day rate with a permanent salary, multiply the rate by the days you will actually work, not by 260. A permanent employee is paid for annual leave and public holidays; a contractor is paid only for days worked. With 4 weeks of leave and 10 public holidays, a full-time year is about 230 working days. Then check whether the rate includes super. Every assumption below is editable, and the result is an estimate.
An estimate. It leaves out tax, GST, insurance, leave loading and the cost of time between contracts unless you add those days above. General information, not financial advice.
Worked example
A contract at $800 a day plus super, over 230 working days, earns $800 × 230 = $184,000 a year. That matches a permanent base salary of $184,000, with $22,080 super on top. If the same $800 has to cover your own super, the salary equivalent is $184,000 ÷ 1.12 = $164,286.
Going the other way, a $120,000 base salary over 230 days is $521.74 a day plus super, or $584.35 a day including super.
Assumptions you can change
- 5 days a week, 52 weeks a year.
- 20 days of leave: the 4 weeks of paid annual leave full-time employees get.
- 10 public holidays; the number varies by state and year.
- No other days off. Add sick days and any gaps between contracts for a fairer comparison.
- Super at 12% (the super guarantee rate since 1 July 2025).
Looking at a permanent role instead? The salary and super calculator splits an advertised salary into base, super and package.
Questions
How do I convert a day rate to an annual salary?
Multiply the day rate by the days you will actually work. With 4 weeks of leave and 10 public holidays that is about 230 days, so $800 a day is $184,000 a year. Don't multiply by 260: an employee is paid for leave and public holidays, a contractor isn't.
How do I convert a salary to a day rate?
Divide the base salary by your working days. $120,000 over 230 days is $521.74 a day plus super, or $584.35 a day if the rate has to include super.
Does a contractor day rate include super?
It depends on the contract. If you're paid through an agency's payroll, super at 12% is often paid on top of the rate. On an ABN, no one pays super for you, so treat the rate as including it. Check the contract.
Why does a day rate look so much higher than a salary?
The rate has to cover days you aren't paid for: leave, public holidays, sick days and gaps between contracts. Employees get 20 days of paid annual leave and 10 days of paid personal leave a year under the National Employment Standards.
Does this include tax or GST?
No. It compares income before tax. On an ABN, GST, insurance, accounting and equipment costs are yours to add.
Is anything I enter saved?
No. The calculator runs in your browser. Nothing is sent to Orry or stored, and you don’t need an account.
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