Salary vs Day Rate Comparison Calculator
Deciding between a permanent FIFO salary and a contractor day rate? This calculator turns a day rate into an annual figure and compares it head-to-head with a permanent salary offer, showing the gross difference in dollars and percent.
Enter Values
Before you rely on this: First-pass guide only. Verify safety-critical or regulated work against the relevant standards, your project requirements and a qualified professional.
How to use this calculator
- Enter the permanent annual salary offer in dollars.
- Enter the contractor day rate offer in dollars.
- Optionally set how many days a year you expect to actually bill on the day-rate role (defaults to 220), then read which option pays more gross and by how much.
How it works
The day-rate role is annualised by multiplying the day rate by the number of days you work: day-rate annual income = day rate × days worked per year. The difference is the day-rate annual minus the salary, and the percentage difference is that difference divided by the salary, times 100. A positive result means the day rate pays more gross; a negative result means the permanent salary does.
Worked example
Worked example. A $120,000 salary versus a $700 day rate over 200 billed days. Day-rate annual income = $700 × 200 = $140,000.00. Difference = $140,000.00 − $120,000.00 = +$20,000.00, which is 20,000 ÷ 120,000 × 100 = 16.67% more. The day rate pays more on a gross basis.
Common mistakes
- Overestimating billable days. Contractors don't get paid for leave, public holidays, sickness or gaps between jobs, so 260 working days rarely all get billed.
- Comparing gross to gross only. A permanent salary usually bundles paid leave, sick leave and super on top, which a raw day rate does not.
- Forgetting super and insurance. As a contractor you may need to fund your own superannuation and income protection out of that day rate.
Frequently asked questions
How many days a year should I assume for the day-rate role?
Be realistic — after annual leave, public holidays, sick days and downtime between contracts, many contractors bill far fewer than the ~260 weekday maximum. 200 to 230 is a common planning range; adjust the field to your situation.
Does this include superannuation and leave?
No. This is a gross comparison of headline pay only. Permanent roles usually add paid leave and super on top of salary, so weigh those benefits against the day rate before deciding.
Related tools
- Site Allowance Calculator
- Site Allowance Tax Impact Calculator
- Hourly Rate to Annual FIFO Salary Calculator
- FIFO Roster Calculator
- Swings Until Savings Goal Calculator
- FIFO Pack Weight Calculator
Explore more in Time, Date, Roster & FIFO.
Tip: Enter any known values to calculate the remaining results.
All calculations run in your browser. Your inputs are never saved or transmitted.