Contractor Day Rate Calculator
This free contractor day rate calculator converts a day rate to an hourly rate — or works the other way, turning an hourly rate into a day rate. You also get weekly and annual equivalents, so you can compare quotes, set freelance rates, and sanity-check whether a day rate covers your costs.
Enter your numbers
Day rate → hourly
Hourly → day rate
Your results
| Weekly equivalent (5 days) | $3,000.00 |
|---|---|
| Annual equivalent (240 days) | $144,000.00 |
| Weekly equivalent (5 days) | $3,000.00 |
| Annual equivalent (240 days) | $144,000.00 |
Weekly figures assume a 5-day work week; annual figures assume 240 working days. Day rates often bake in non-billable time (admin, quoting, holidays), so the straight division above is a baseline, not a guarantee of take-home pay.
How to use this calculator
Enter a day rate and your typical hours per day to see the equivalent hourly rate, plus what that day rate is worth per week and per year. Below it, you can work the other direction: enter an hourly rate to see the day rate it implies. The two sections are independent, so you can compare, say, a client's $600/day offer against your own $80/hour asking rate side by side. Everything updates instantly as you type.
Use the weekly and annual equivalents to judge whether a rate covers your real costs — insurance, tools, taxes, and unpaid time between jobs — before you sign a contract.
How it works
The conversions are simple division and multiplication. Hourly = day rate ÷ hours per day, so $600 ÷ 8 hours = $75 per hour. In reverse, day rate = hourly rate × hours per day, so $75 × 8 hours = $600 per day.
Weekly figures multiply the day rate by 5 days; annual figures multiply it by 240 working days — 52 weeks × 5 days, minus roughly 20 days for holidays, sick days, and gaps between jobs. A contractor rarely bills every working day, so treat the annual number as an upper-bound estimate, not a promised income.
One caveat: a day rate usually bakes in non-billable time — admin, quoting, travel, and unpaid downtime — while an hourly wage from a salaried job does not. That is why a day rate often converts to an hourly figure that looks higher than an employee's wage: the straight division is a baseline for comparison, not a measure of take-home pay.
Frequently asked questions
How do you convert a day rate to hourly?
Divide the day rate by the number of hours in your work day. For example, a $600 day rate over an 8-hour day is $600 ÷ 8 = $75 per hour. If your work day is longer or shorter, use your actual hours for an accurate figure.
What is a good contractor day rate?
There is no universal figure. A good day rate depends on your trade, location, experience, and demand. A common approach is to set a rate that covers your costs plus your target profit across about 240 billable days a year, then compare it against what other contractors in your trade and area charge.
Should contractors charge hourly or daily?
Day rates suit full-day or multi-day jobs because they guarantee your time is paid for and simplify invoicing. Hourly rates suit small, uncertain, or stop-start jobs where the exact hours are unclear. Many contractors quote day rates for on-site work and hourly rates for short or remote tasks.
How many billable days are in a year?
A common planning figure is 240 billable days: 52 weeks × 5 days = 260, minus roughly 20 days for holidays, sick days, and gaps between jobs. This calculator uses 240 working days for its annual estimate.
Does a day rate include travel and materials?
Usually not. A day rate normally covers your labor only; materials, travel, lodging, and permits are billed separately unless your contract says otherwise. Always confirm what is included before comparing quotes.