Day Rate Calculator
Work out the day rate you need to charge to hit your annual income target. Enter your working pattern, holidays, and non-billable days to get an accurate figure — not a rough guess.
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How to use this day rate calculator
Convert between annual salary, daily rate, and hourly rate. Accounts for working days, holidays, and pension contributions.
- 1Enter your target figure
Type either your desired annual salary, daily rate, or hourly rate.
- 2Set working days
Adjust the number of working days per year (default 230, accounting for holidays and weekends).
- 3Add pension contributions
Optionally include employer pension contributions in the calculation.
- 4Compare the rates
See your equivalent annual, daily, and hourly rates side by side.
Why this matters
Whether you are quoting for contract work or comparing a permanent role against going freelance, knowing your true day rate helps you price jobs accurately. Many tradespeople undercharge because they forget to account for holidays, sick days, and pension.
Frequently asked questions
How do I calculate my day rate as a contractor?
To calculate a fair day rate, start with your desired annual income, then divide by the number of truly billable days in a year. Subtract weekends, public holidays (8 in England), any annual leave you plan to take, and non-billable days for admin, training, and business development. Most contractors end up with 200–230 billable days per year.
Why should I account for non-billable days?
As a self-employed tradesperson or contractor, you only get paid for the hours you bill a client. Days spent quoting, chasing invoices, doing admin, dealing with illness, or handling training are days you're not earning. If you set your rate based on 260 working days but only bill 220, you'll under-earn by over 15%.
How many working days are there in a year in the UK?
There are roughly 260 working days in a year (52 weeks × 5 days). After deducting the 8 UK bank holidays, you have around 252 days. Taking 25 days of annual leave and 15 non-billable admin days leaves approximately 212 billable days — a sensible baseline for most contractors.
Should my day rate include VAT?
If you are VAT-registered, you charge VAT on top of your day rate. Quote your net day rate to clients and add VAT on your invoice. Use our VAT Calculator to work out the gross amount to put on your invoice.
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