Day Rate Conversion Calculators - How Accurate Are They ?

[malvolio]

When considering contracts I try multiple different calculators until I find one that spits out an answer that aligns with the lifestyle I want to live.

Which is about as pointless as a certain well-known quiz programme... But thanks for the contribution.

[PCTNN]

3. Whether permanent or temporary, I do not want to work more than 220 days a year, less if possible. This is because I value time with family and friends.

Then why don't you go permanent? I went permanent in March 2021 and probably worked the equivalent of 40-50 days

[NowPermOutsideUK]

No matter how many times I stress that I want to compare a perm to an inside job (and do not value any of the benefits like free sandwiches) I keep being told its impossible to compare the two. When I ask specifically how do you compare the two I get told "Its far too complicated and a small brain like me would not understand it". I imagine every contractor will be evaluating two offers and I would like to see a framework for how that is done

Pleased to see WTFH setting the standard for admin and managing a group of people - I must be trolling and there is no way I could be earning the salary I claim to be - Meanwhile he will work for 160K a year and demand a piece of equity, bonuses and career progression and thats if it fits within his busy social schedule

I expect to be banned for asking about rates comparison on a contractor forum. Meanwhile the other boards are full of Boris discussion which are more crucial. No need for useful threads to discuss rates or money - Those are not important - Lets hold hands and sing Kumbayan

[SueEllen]

Which is about as pointless as a certain well-known quiz programme... But thanks for the contribution.

Harsh! It is as useful as this thread.

[malvolio]

No matter how many times I stress that I want to compare a perm to an inside job ...

Let us stop you there. It can't be done. You cannot ignore incidental benefits of full employment, even to an inside IR35 job. Only you can answer your question, by working through all the various deductions and value-additions, taking account of your personal tax code and position, any other benefits you may get from other sources, your particular feelings about work/life balance and how tolerant you are of Human Remains predations on your working life. And even then, you are still comparing apples and oranges.

A few years back I did a full, detailed breakdown of the real cost of employing someone against that of hiring a contractor (inside and outside). It required a very long list of items to be considered, none of which were take-home pay.

HTH. BIVMDI.

[SueEllen]

No matter how many times I stress that I want to compare a perm to an inside job (and do not value any of the benefits like free sandwiches) I keep being told its impossible to compare the two. When I ask specifically how do you compare the two I get told "Its far too complicated and a small brain like me would not understand it". I imagine every contractor will be evaluating two offers and I would like to see a framework for how that is done.

In no particular order -

Is the agency/company solvent?

Is the agency/company known for pulling tricks with their payments or contracts?

Will I have to work all those 7-8 hours?

Will I learn something new ?

If I have a dental appointment (or random other appointment) will I be able to make up the time later so I can get paid?

If I have a dental appointment (or random other appointment) and can't be bothered to make up the time how do I charge?

Will I have to work in an office?

If I have to work in an office how far will I have to commute?

etc.

Pleased to see WTFH setting the standard for admin and managing a group of people - I must be trolling and there is no way I could be earning the salary I claim to be - Meanwhile he will work for 160K a year and demand a piece of equity, bonuses and career progression and thats if it fits within his busy social schedule

Ask a silly question you get a silly answer or a thread full of them.

I expect to be banned for asking about rates comparison on a contractor forum. Meanwhile the other boards are full of Boris discussion which are more crucial. No need for useful threads to discuss rates or money - Those are not important - Lets hold hands and sing Kumbayan

You have started multiple threads asking the same question instead of bumping your original thread because you don't like the answers you keep getting. Regardless of the forum you are on, the admins/moderators get fed up if you keep doing that and will ban you.

The Boris Johnson is PM of the UK and the threads about his "ways" are in General which has the subheading - "All hope abandon ye who enter here. Seriously."

[northernladuk]

No matter how many times I stress that I want to compare a perm to an inside job (and do not value any of the benefits like free sandwiches) I keep being told its impossible to compare the two.

Because they are fundamentally different. Inside is only a tax label and it's still a T&M contracting job. Perm is full time employment. Just because inside is taxed like a perm it doesn't mean the work is and that is why you cannot compare them to any level that is useful. They are not the same so cannot do a comparison due to too many intangibles which you cannot ignore if you want anything remotely useful from the comparison.

[Rik1087]

I’m not sticking up for the OP by any stretch as it sounds like there is previous ?

But, if everyone were to not take things so literal, the question itself has some merits. The majority of you contract, I’d imagine by the comments it’s a very high day rate, so let’s say £800 a day, if…and remember when answering, you fell out of love with contracting and wanted to possible return to a perm role, what would be the annual salary that would tempt you back in….everyone roughly knows that figure. It’s the figure that makes it too hard to ignore, it will be clearly lower than 800 a day annually, but big enough to make tolerating 121’s and HR bearable.

For the OP’s benefit, I am currently deciding whether to accept a contract role or stay perm, I’m leaning towards accepting the contract as financially (600 per day inside close to doubles my perm salary) But, if my salary (and I do take into consideration bonuses and in this role stocks payment as that is cold hard cash) but if that were to increase perhaps all in to around 90k then that figure would probably make it not worth the stress and hassle of going contracting. Obviously the higher you go up in day rate the higher the base salary needs to be.

But as per my opening line, it’s really not that hard to answer the question the poster asked. If you state figures that doesn’t mean whoever reads that is going to take it as gospel, it’s an individual figure, based on individual circumstances which can be stated in your response. But that’s what the poster was asking for…individual opinions. The more opinions and figures floated the more you can start to extract a reasonable average. To say it’s impossible to state is complete b*llocks. Everyone has a price in mind that would take them back to perm.

[malvolio]

I’m not sticking up for the OP by any stretch as it sounds like there is previous ?

But, if everyone were to not take things so literal, the question itself has some merits. The majority of you contract, I’d imagine by the comments it’s a very high day rate, so let’s say £800 a day, if…and remember when answering, you fell out of love with contracting and wanted to possible return to a perm role, what would be the annual salary that would tempt you back in….everyone roughly knows that figure. It’s the figure that makes it too hard to ignore, it will be clearly lower than 800 a day annually, but big enough to make tolerating 121’s and HR bearable.

For the OP’s benefit, I am currently deciding whether to accept a contract role or stay perm, I’m leaning towards accepting the contract as financially (600 per day inside close to doubles my perm salary) But, if my salary (and I do take into consideration bonuses and in this role stocks payment as that is cold hard cash) but if that were to increase perhaps all in to around 90k then that figure would probably make it not worth the stress and hassle of going contracting. Obviously the higher you go up in day rate the higher the base salary needs to be.

But as per my opening line, it’s really not that hard to answer the question the poster asked. If you state figures that doesn’t mean whoever reads that is going to take it as gospel, it’s an individual figure, based on individual circumstances which can be stated in your response. But that’s what the poster was asking for…individual opinions. The more opinions and figures floated the more you can start to extract a reasonable average. To say it’s impossible to state is complete b*llocks. Everyone has a price in mind that would take them back to perm.

No they don't...

The fundamental question is unanswerable but even if it weren't, salary is only a small part of the decision.

[Rik1087]

The fundamental questions isn’t unanswerable. He’s asking for your opinion given that situation. If you have never ever thought about it, which if you’re a contractor I find it hard to believe that it’s not crossed your mind considering the majority of you are so clued up on your figures.

but if you genuinely haven’t ever thought about a rough comparison, and a perm base salary that would tempt you back, then fair enough, state that, you’ve never thought about it and you don’t have the capacity to figure it out right now. Don’t slate the poster for a ridiculous question just because you can’t be bothered.

and yes, base salary is only a small
part. Bonus and stocks I mentioned, the only other is pension and the employer contribution. We could mention private healthcare, cycle to work, childcare vouchers, perhaps tech scheme, all of which I have and have never used.

other than that, company provided mobile and laptop, and if you’re very lucky company provided education budget.

But, the OP asked to consider base salary only.

If you really wanted you could include those benefits in your calculation and lower your annual salary as a result. But realistically you and others just can’t be ar*ed and would rather belittle the poster than answer a genuine question that has merit.