Day Rate Calculator
What a contractor day rate really adds up to once you allow for time off and gaps between jobs.
How do you work out annual income from a day rate?
Start with 260 weekdays, subtract holiday, bank holidays and sick days, then reduce what is left by the share of time you expect to be between contracts. Multiply the billable days by your day rate. A £450 rate with the defaults above gives around 191 billable days and roughly £86,000 turnover rather than the £117,000 you get from 260 days.
To compare with a salary, divide by your days and use the Income Tax Calculator for take-home. Not IR35 advice: whether a role is inside IR35 changes your tax significantly.
Frequently asked questions
How many working days are in a UK year?
A year has about 260 weekdays. After 8 bank holidays and 25 days holiday you have around 227 available days before any sickness or gaps between contracts.
What is a £500 day rate in annual salary?
With 220 billable days a £500 day rate is £110,000 turnover. As a permanent salary equivalent it is usually worth materially less, since employees receive paid holiday, pension and sick pay.
How do I convert a day rate to an hourly rate?
Divide by the hours in your contracted day, usually 7.5 or 8. A £450 day at 7.5 hours is £60 an hour.
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