Educational only: Work and pay decision support, not tax, legal, financial or career advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral work and pay planning using your own assumptions.
What this calculator helps you decide
Best for
Contractors comparing current and proposed renewal terms.
Outputs
Renewal advantage, gap cost and effective hourly-rate delta.
Start here
Enter both rates and the common billable horizon, then add renewal friction.
- Close-intent boundary
- Do not use this to determine contract enforceability; use Contractor Rate Equivalent Calculator for employee-contractor parity.
Compare offers and work arrangements
Contract Renewal Value: renewal advantage
Renewal advantage, gap cost and effective hourly-rate delta.
Current and renewal contract assumptions
Compare rates over the same billable horizon after renewal costs and gap hours.
Your numbers stay in this browser
Current contract hourly rate.
Proposed renewal hourly rate.
Expected billable hours in both scenarios.
Working weeks in the comparison horizon.
Renewal frictionOpen the assumptions you are less likely to change on every comparison.
One-time costs assigned to the renewal.
Billable hours lost during the renewal gap.
Calculated result
The engine returns a 3,600 renewal advantage.
Use one currency consistently across all inputs.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Entered scenario3,600.00Baseline
Renewal hourly rate: 115.50 currency units8,880.005,280.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Renewal advantage
Renewal advantage
renewalAdvantage = renewalGross − currentGross − renewalCosts − gapCost3,600.00 currency unitsResult3,600.00 currency units
Renewal gross minus current gross, renewal costs and gap cost. Displayed using the engine-rounded value.
Renewal advantage formula →Gap cost at current rate
Gap cost at current rate
gapCost = gapHours × currentRate4,000.00 currency unitsResult4,000.00 currency units
Gap hours multiplied by current rate. Displayed using the engine-rounded value.
Gap cost at current rate formula →Effective hourly-rate delta
Effective hourly-rate delta
effectiveHourlyRateDelta = renewalEffectiveHourlyRate − currentEffectiveHourlyRate3.75 currency unitsResult3.75 currency units
Renewal effective rate after costs minus current effective rate. Displayed using the engine-rounded value.
Effective hourly-rate delta formula →Inputs used
- Current hourly rate
- 100.00 currency units
- Renewal hourly rate
- 110.00 currency units
- Billable hours per week
- 20
- Working weeks
- 48
- Renewal costs
- 2,000.00 currency units
- Gap hours
- 40
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario values are visible in the URL, calculations run in the browser, and optional saved state stays only on this device. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| currentRate | Current contract hourly rate. | currency units/hour | 0 to 100000000 | Required | 100 |
| renewalRate | Proposed renewal hourly rate. | currency units/hour | 0 to 100000000 | Required | 110 |
| billableHoursPerWeek | Expected billable hours in both scenarios. | hours/week | 1 to 168 | Required | 20 |
| workingWeeks | Working weeks in the comparison horizon. | weeks/year | 1 to 53 | Required | 48 |
| renewalCosts | One-time costs assigned to the renewal. | currency units | 0 to 100000000 | Required | 2000 |
| gapHours | Billable hours lost during the renewal gap. | hours | 0 to 8760 | Required | 40 |
Contract Renewal Value: renewal advantage
Use renewal advantage after keeping gap time and renewal costs visible.
Formula summary
- Primary formula
- renewalAdvantage = renewalGross − currentGross − renewalCosts − gapCost
Data used here
- The estimate uses your inputs and the work-value formula documented in the methodology.
Decision checks
Act on the result
Compare the result with the exact proposed contract scope and payment terms.
Stress-test the decision
Retest renewal rate, gap hours and billable hours.
When this estimate can be misleading
- No enforceability, tax, probability or collection claim is made.
- Non-billable time outside entered costs is excluded.
- Use renewal advantage after keeping gap time and renewal costs visible.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Use these practical guides to interpret the decision and its assumptions.
- How to use the Contract Renewal Value calculator
Compare current and renewal gross value, renewal costs, gap cost and effective hourly rates.
Read guide
Frequently asked questions
How much value does this renewal add after costs and gap time?
Compare the result with the exact proposed contract scope and payment terms.
Which official source and period does this use?
This market-neutral tool does not use an official local policy rule.
Can I share or save a scenario?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
What should stay consistent when I compare the options?
Keep the time basis, units and included costs consistent across options, then verify the assumptions that create the largest difference.