Contractor Hourly Rate Calculator
Calculate contractor hourly rates for 1099 work, including overhead, taxes, and unpaid admin time.
1099 contractors do not get employer-paid benefits — your hourly rate must cover health insurance, retirement, and gaps between contracts. This scenario uses $90k target income and 26 billable hours for an experienced US contractor.
Market reference
| Metric | Range | Note |
|---|---|---|
| 1099 vs W-2 uplift | +25–40% | benefits & stability |
| Bench time between contracts | 4–8 weeks/yr | plan in rate |
| Insurance + retirement | $8k–$15k/yr | solo contractors |
| IT / trades contractor | $55–$150/hr | wide by skill |
Interactive example — contractor hourly rate calculator
Defaults match this page's scenario. Adjust numbers to see your rate update instantly.
- Minimum hourly
- $120
- Day rate (8h)
- $964
- Typical project
- $5,784
- Monthly retainer
- $13,566
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Frequently asked questions
How is a contractor rate different from employee salary?
Divide salary by billable hours, then add tax, benefits, and downtime — not 2,080 hours.
Should contractors charge more than employees per hour?
Yes — you cover benefits, taxes, and unpaid bench time.
What if my contract is fixed-price?
Estimate hours, multiply by your hourly floor, and add a scope buffer.