Contract Rate Negotiation Calculator
Know your number before you walk into the negotiation. Enter your income target, expenses, and benefits to get a walk-away floor, a target rate with profit margin, and a word-for-word client script.
Income Target
Include Self-Employment Tax
Contractors pay both halves of FICA (15.3%). Toggle off only if covered by other employment.
Costs & Margin
Below this = losing money
20% margin
as full-time salary
Annual Cost Basis
Rate by Contract Type
Min
$81Target
$97Min
$648Target
$778Min
$3,241Target
$3,890Min
$10,805Target
$12,965How to Present This to a Client
Copy and personalize — lead with value, anchor on the target rate, mention flexibility:
"Based on my experience and the scope of this engagement, my rate is $97/hour — which comes to roughly $155,585 annually at standard utilization. I've structured this to include coverage for taxes, business expenses, and the overhead that comes with independent work. I'm flexible on project structure — hourly, weekly retainer, or milestone-based — whichever fits your workflow best. My floor is $81/hour to remain sustainable, but I'd love to find an arrangement that works for both of us."
Tip: Open at your target rate, not your walk-away. Every dollar of movement comes out of your margin, not your floor.
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