Rate Calculator ©

Rate Calculator takes account of the various factors influencing employment and calculates an appropriate remuneration.  The program can be used in two ways:

1. By Salary

A contracting hourly rate, equivalent to a permanent salary, is calculated.

2. By Hourly Rate

A permanent salary, equivalent to a contracting hourly rate, is calculated.

Choose either By Salary or By Hourly Rate before entering data.

User Inputs

You enter data into the fields indicated by the white rectangles.  Calculations are updated automatically once the tab key is struck or the cursor is moved to another field.

Note:  Rate Calculator is an excellent way to model expected hourly rates.  However, it is also easy to enter optimistic data that returns unrealistic rates.  Be careful to enter data that reflects actual and not would like to have.  In the end, the market place determines acceptable rates.

The following inputs are available:

Salary

In By Salary mode, this is the equivalent permanent annual salary that an hourly rate is to be calculated for.  In By Hourly Rate mode, it is the permanent salary equivalent to the entered hourly rate.

Hours/Week

The number of hours in a normal working week.

Sick Leave

The number of weeks to be allowed as sick leave entitlement.

Annual Leave

The number of weeks to be allowed as annual leave entitlement.

Public Holidays

The number of weeks to be allowed as public holidays.

Rostered Days Off (RDOs)

The number Roster Days of per annum, in weeks.

Between Jobs

The number of weeks allowed as time off between jobs.

Workers Compensation

The annual cost of Workers Compensation.

Professional Indemnity

The annual cost of Professional Indemnity.

Superannuation

An allowance for superannuation, expressed as a percentage of annual salary.

Contractors Risk

An allowance for the risk and uncertainty associated with being a contractor.  Expressed as a percentage of annual salary.

Expertise

A premium to cover particular expertise a contractor may have.  For example, an engineer that specialises in finite element modelling of plastic extrusions; a drafter that specialises in design of robot manipulators.  Note that expertise in one field may be irrelevant to a job in another and consequently no allowance should be made.  Expressed as a percentage of annual salary.

Agents Margin

An allowance for the various contributions of an agent.  For example, job search, customer liaison, organisation of superannuation and worker compensation payments.  Expressed as a percentage and applied to the base rate.

Calculated Fields

The following fields are calculated:

Weeks Worked

This is the number of weeks worked in a year.

Base Rate

The calculated hourly rate before the agents margin is added.

Total Charge Out Rate

This is the appropriate hourly rate for the given salary required, with allowances for the various entitlements that are provided with a permanent position.

Equivalent Annual Salary

This is the equivalent permanent salary for the given hourly rate, with allowances for the various entitlements that are provided with a permanent position.