Multiply your daily rate by the number of working days in a year. With a 5-day work week over 52 weeks, there are 260 working days, so a $250 daily rate equals $65,000 annually. Subtract any unpaid holidays or vacation days you plan to take for a more accurate figure.

A common approach is to take the equivalent annual salary you'd want, divide by 260 working days, then add 25–50% to cover self-employment taxes, benefits, and overhead that employers typically pay. For a $65,000 salary equivalent, you might charge $300–$375 per day to account for these additional costs.

A $250 daily rate equates to roughly $65,000 annually for a full year of work, or about $31.25 per hour. Whether this is good depends on your field, experience level, and location. For contractors, remember that you need to cover your own taxes, insurance, and benefits, so the effective take-home is lower than a comparable salaried position.