Contract vs Permanent Calculator
Compare permanent employment vs contract work after tax, expenses, and gaps between contracts. See if the daily rate justifies the risk.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Net Annual Income
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Cumulative Earnings
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Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Gross Income
- €13,500
- Tax Rate
- 28.0%
- Working Days/yr
- 260
- Gap Days (unpaid)
- 0
- Net Income
- €9,720
- 5-Year Total
- €48,600
- Gross Income
- €84,000
- Tax Rate
- 25.0%
- Working Days/yr
- 210
- Gap Days (unpaid)
- 30
- Net Income
- €51,000
- 5-Year Total
- €255,000
| Factor | Permanent | Recommended Contract |
|---|---|---|
| Gross Income | €13,500 | €84,000 |
| Tax Rate | 28.0% | 25.0% |
| Working Days/yr | 260 | 210 |
| Gap Days (unpaid) | 0 | 30 |
| Net Income | €9,720 | €51,000 |
| 5-Year Total | €48,600 | €255,000 |
Contract nets €41280/year more. Contract at €400/day × 210 days = €84000 gross, minus €4000 expenses and 30 gap days (€9000) = €51000 net. Permanent total comp €13500 nets €9720.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
240 billable days, no gaps
At stated days and gaps
60 gap days
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
Confidence & Assumptions
The result swings widely between best and worst cases — it depends heavily on assumptions that are hard to predict.
Contract Net: €42,000 (worst) → €41,280 (expected) → €69,000 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
This calculator compares net income from permanent employment versus contract work, adjusting for business expenses, tax differences, and unpaid gaps between contracts.
How the calculation works
Permanent net = (salary + bonus + benefits) × (1 - tax). Contract net = (daily rate × days - expenses) × (1 - tax) minus income lost during gap days.
Formula
Perm Net = (Salary + Bonus + Benefits) × (1 - Tax) Contract Net = (Rate × Days - Expenses) × (1 - Tax) - Gap Days × Rate × (1 - Tax)
Example
Permanent €60k + €3k bonus + €7k benefits nets ~€50k. Contract €400/day × 210 days minus €4k expenses and 30 gap days nets ~€52k — a 30-50% daily rate premium is typical.
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for Contract vs Permanent Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
Permanent net = (salary + bonus + benefits) × (1 - tax). Contract net = (daily rate × days - expenses) × (1 - tax) minus income lost during gap days.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: Permanent €60k + €3k bonus + €7k benefits nets ~€50k. Contract €400/day × 210 days minus €4k expenses and 30 gap days nets ~€52k — a 30-50% daily rate premium is typical.
Factors to Consider
- Contract daily rates should be 30-50% above equivalent permanent salary
- Gap days between contracts are the biggest financial risk
- Contractors miss paid leave, sick pay, and training budgets
- IR35 and employment status rules affect tax treatment
- Career progression and internal promotions favour permanent roles
Common Mistakes
- Comparing daily rate × 260 to permanent salary without gaps
- Ignoring unpaid holidays and sick days in day rate calculations
- Forgetting business expenses and accounting costs
- Not building a 3-6 month emergency fund for contract gaps
Frequently Asked Questions
What daily rate should I charge vs permanent salary?+
Divide your total compensation by ~200 billable days, then add 30-50% for gaps, no benefits, and risk. A €70k permanent role needs ~€450-520/day contracting.
How many gap days should I plan for?+
Budget 20-40 gap days per year for contract hunting, holidays, and between-project downtime. In recessions, gaps can stretch to 60-90 days.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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