💼 Day Rate Calculator

The day rate you need to charge to match a target salary — for freelancers & contractors

£
The equivalent gross salary you want
days
Allow time for admin, sales & marketing
weeks
Holiday + sickness + bank holidays
£
Insurance, software, accountant, equipment

Your Required Rates

—
minimum day rate
Hourly Equivalent (7.5hr day)—
Billable Days Per Year—
Gross Revenue Needed—
⚠️ This is gross — you'll pay income tax and NI (or corporation tax/dividends via a limited company) on top. As a rough rule, freelance day rates need to be 30–50% above the equivalent employed daily salary.

Why Freelance Rates Look "High"

An employed person on £50,000 costs their employer far more than £50,000 — employer NI, pension, holiday pay, sick pay, equipment and training. As a freelancer you fund all of this yourself, plus unbillable time spent on sales, admin and accounts. That's why a £192/day "salary equivalent" actually requires charging £280+.

The Calculation

Day rate = (target income + business costs) ÷ billable days. Billable days = (52 − weeks off) × billable days per week. With 6 weeks off and 4 billable days/week, you have just 184 billable days per year — not 260.

Don't Forget IR35

If you contract through a limited company for medium/large clients, the client determines your IR35 status. Inside IR35, you're taxed like an employee with none of the benefits — rates for inside-IR35 roles should be 20–25% higher to compensate.