Day rate calculator
Work backwards from your target income to the day rate you need to charge, once holidays and business costs are accounted for.
Your required day rate
Change the numbers, the results update instantly.
Before tax. This is turnover you need to invoice, not take-home pay. Always take advice before setting your rate.
How it works
Billable days per year is your working days per week multiplied by the weeks you actually work, after holiday. Your required day rate covers your target income plus your annual business costs, spread across those billable days. Few contractors are booked every single working day, so we also show the rate you'd need if only 80% of your billable days are actually billed, a more realistic planning figure. This is one of the first numbers we work through with freelancers and contractors setting their rates for the first time.
Frequently asked questions
Why is the 80% utilisation rate higher?
Utilisation accounts for gaps between contracts, admin days, and time spent finding new work. If only 4 in 5 working days are actually billed, each billed day needs to cover more.
Does this include tax?
No. This figure is the rate you need to invoice before tax, National Insurance or corporation tax. Use the salary and dividend calculator to see what that turnover becomes after tax, or read our tax-efficient salary guide for the detail.
What should I include in business costs?
Accountancy fees, insurance, software, equipment and any other running costs of your contracting business, excluding your own pay.
How many holiday weeks should I plan for?
Most contractors plan for 5 to 8 weeks a year, covering annual leave, sickness and gaps between contracts. Adjust to your own situation.
These results are a simplified illustration based on 2026/27 rates, not advice. Your real position depends on your full circumstances. For a personalised answer, book a free consultation.
Numbers looking complicated?
A calculator gives you an estimate. A free call gives you a plan. Book one and we'll work through your actual situation.