Day Rate Calculator
Enter your annual salary, hourly rate, or target income to calculate your equivalent day rate — or convert a day rate back to an annual figure.
What day rate should you charge as a contractor or freelancer? Whether you are moving from permanent employment to contracting, or want to compare rates, this calculator converts between annual salary, hourly rate, and day rate.
Adjust your working weeks, days per week, and hours per day to get an accurate equivalent for your situation.
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What this calculator does
This calculator converts between annual salary, hourly rate, day rate, and target income. It accounts for working weeks per year, days per week, hours per day, and unpaid leave to give you accurate equivalent figures.
Who it is for
Contractors, freelancers, consultants, and anyone comparing permanent salaries with day rates or hourly rates.
How to use it
Select your conversion mode (e.g. salary to day rate), enter the relevant figure, and adjust your working pattern. The calculator instantly shows your equivalent rates across all time periods.
How the calculation works
Billable days = (days per week × weeks per year) − unpaid leave days. Day rate = annual amount ÷ billable days. Hourly rate = day rate ÷ hours per day. All conversions work in both directions.
Worked example
A £45,000 annual salary with 5 days/week and 46 working weeks (230 billable days): Day rate = £45,000 ÷ 230 = £195.65. Hourly rate (8-hour day) = £24.46.
Assumptions and limitations
- Does not include tax calculations — use alongside the Take Home Pay or Contractor Calculator
- Assumes consistent working pattern throughout the year
- Standard assumption is 46 working weeks (52 minus 6 weeks holiday/bank holidays)
- Does not account for sick days or training days
Frequently asked questions
What day rate is equivalent to a £50,000 salary?
Assuming 230 billable days (5 days/week, 46 weeks/year), a £50,000 salary is equivalent to a day rate of approximately £217. However, contractors typically charge more to cover lack of benefits, pension, and holiday pay.
How many billable days are there in a year?
A typical contractor works 220–230 billable days per year (46 weeks × 5 days = 230). This accounts for approximately 25 days holiday and 8 bank holidays.
Should my day rate be higher than the salary equivalent?
Yes, typically 20–50% higher. As a contractor you do not receive employer pension contributions, sick pay, holiday pay, training budgets, or other employee benefits.
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Related guides
- How to Calculate Your Freelance Day Rate — A practical guide to setting your day rate as a freelancer or contractor, including salary equivalence and market benchmarks.
- How Overtime Pay Works in the UK — Understand your overtime pay rights, how it is taxed, and how different multipliers affect your earnings.
- How Holiday Accrual Is Calculated in the UK — Learn how holiday builds up over a leave year and how to check how much you have accrued so far.
- Inside IR35 Explained: What UK Contractors Need to Know — A clear guide to working inside IR35, how it affects your take-home pay, and what it means for your contract.
- How Holiday Entitlement Works in the UK — A practical guide to understanding your statutory holiday entitlement as a UK worker, covering full-time, part-time, and irregular working patterns.
- Outside IR35 Explained for UK Contractors — What outside IR35 means, how it affects your take-home pay, and the key differences between inside and outside IR35.
Sources and references
HMRC employment status guidance (https://www.gov.uk/employment-status)
Last updated
Last reviewed: 2025-04-12.