A $55/hour contract rate doesn't equal a
Contractors pay an extra 7.65% in SE tax and must cover their own health insurance, retirement, and PTO.
Use this calculator before making any financial commitment that depends on this type of calculation. Running the numbers in advance lets you evaluate options without the pressure of a live negotiation or decision deadline.
The most consequential mistake is comparing financial figures that are not on the same basis — gross versus net, before-tax versus after-tax, or nominal versus inflation-adjusted. Always check whether figures you are comparing use the same definition.
A first-time buyer models three scenarios before making an offer: 10%, 15%, and 20% deposit on a £280,000 property. The calculator shows exactly how the monthly payment and total interest cost change with each deposit level, making the decision visible rather than speculative.
30–40% more than the equivalent W-2 hourly rate to account for SE tax, benefits, and unpaid time.
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