Free · No ads · No login
What should I charge as a contractor?
Start from the take-home you want and work backwards to the hourly and day rate, after tax, ACC, KiwiSaver, expenses and the weeks nobody pays you for.
Charge at least
$82.81 an hour
$662 a day (8 hours), plus GST: $95.23 an hour on the invoice
- Fees for the year (before GST)
- $114,281
- Business expenses
- −$5,000
- Income tax, ACC earner levy
- −$27,853
- KiwiSaver (still yours)
- −$3,428
- Take-home for the year
- $78,000
That's $2,484 invoiced in each of your 46 billable weeks, to take home $1,500 in all 52.
Once the work comes in, KeaBooks tells you what to set aside from every invoice. Try KeaBooks free →
Uses 2026/27 rates · figures last checked October 2026.
Free, no ads, and it runs in your browser: what you type isn't sent to us unless you choose to share or save a result. Spotted a mistake? Let us know.
Why the rate is higher than you think
Dividing a salary by 2,080 hours gives a rate that looks fair and leaves you short. An employee is paid for leave, public holidays and sick days, has KiwiSaver topped up by their employer, and never pays for their own laptop or insurance. A contractor pays for all of that out of the hours they bill.
Already have a rate in mind? The contractor take-home calculator runs it forwards, and contractor vs permanent compares it with a salary.
Contractor rate questions, answered
- How do I work out my hourly rate as a contractor in NZ?
- Start from what you want to take home, add back income tax, ACC, KiwiSaver and your business expenses to get the fees you need for the year, then divide by the hours you'll actually bill. To take home $1,500 every week, billing 30 hours a week with 6 weeks off and $5,000 of expenses, you need about $114,281 in fees: around $83 an hour before GST.
- Why does it ask for billable hours, not hours worked?
- Nobody pays you for quoting, invoicing, chasing payments, learning or finding the next contract. Most contractors bill far fewer hours than they work, and pricing on worked hours is the most common reason a rate turns out too low.
- How many weeks off should I allow?
- An employee gets 4 weeks' annual leave plus 12 public holidays (about 6.4 weeks), and sick leave on top. As a contractor none of it is paid, and gaps between contracts are common. Six weeks is a minimum for most people; eight to ten is safer if work is patchy.
- Do I add GST on top of this rate?
- Yes, if you're GST-registered. The rate here is before GST; add 15% on the invoice. The GST isn't yours: it goes to IRD with your GST return.
- What about the ACC work levy?
- Self-employed people pay ACC's earner levy (included here) and a work levy that depends on your occupation. ACC invoices it after your tax return. Enter your own figure if you know it; it pushes the rate up a little.
More free tools
Contractor Take-home Calculator →Contractor vs Permanent Calculator →How Much Tax to Set Aside →Or see all our free NZ money calculators.