Contractor or permanent? See the real difference
A new free tool: compare a contract rate against a salary, take-home both ways, the break-even rate to match your pay, and exactly what you gain and give up.
"They've offered me a contract at $X an hour, is that actually better than my salary?" It's one of the hardest money questions to answer, because a salary hides a lot. So here's a free tool that lays it out.
The Contractor vs Permanent calculator puts both sides next to each other and answers the question in both directions:
- Thinking of going contracting? It shows the rate you'd need to charge to match your current salary's total value, including the employer KiwiSaver and paid leave you'd be giving up.
- Thinking of going permanent? It shows the salary your contract rate is actually worth, so you know what to ask for.
It runs both through the real 2026/27 tax rules (PAYE, ACC, KiwiSaver, student loan) and is honest about the things people forget: about 6 weeks of paid leave, employer KiwiSaver, sick leave, and the downtime risk between contracts. That's why a contractor rate has to be a good chunk higher than salary ÷ hours just to break even.
The numbers are only half the decision, but at least now they're the clear half. And whichever way you lean, lumpy contracting income is exactly what a budget is for. Plan it, free, with KeaBudget.
Built in the open, as always. Tell us what you think at hello@keabudget.co.nz.