Day Rate Calculator
What day rate do you actually need?
Built for how contracting really works: day rates, unbilled weeks between contracts, and the gap between what a role pays inside and outside IR35.
Free · No signup · Nothing leaves your browser · Every number explained below
Inside vs outside IR35
The same day rate is worth noticeably less inside IR35, because employment costs come out before you’re paid. Here’s the gap on your numbers — and the rate that closes it.
Where the money goes
Every pound a client pays, split by where it ends up.
Your billings, itemised
Worth knowing
Pricing project work instead?
The rate calculator works from a take-home goal with utilisation, admin time, and a safety buffer.
How this works
No black box. The numbers below are your numbers and update as you change the inputs.
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Step 1
Count the days you actually bill
260 working days, minus — holiday, — bank holidays and — weeks on the bench, leaves — billable days.
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Step 2
Work back through the tax
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Step 3
Cover costs and pension
Adding expenses and pension brings total billings to — for the year.
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Step 4
Divide, round up
— over — days is — a day, rounded up to —.
Assumptions worth knowing: UK figures use 2026/27 rates for England, Wales and Northern Ireland — Scottish income tax bands differ. The outside-IR35 model assumes the standard approach of a small director’s salary plus dividends, with no other income and no associated companies. The inside-IR35 model assumes a standard umbrella running PAYE. Student loan repayments, the High Income Child Benefit Charge, and VAT flat-rate effects aren’t modelled. A planning tool — not tax advice; check anything important with an accountant.
Where UK day rates land
Your floor comes from your numbers; the market sets the ceiling. Typical UK knowledge-work contract rates cluster like this:
| Experience | Typical day rate (GBP) | Notes |
|---|---|---|
| Junior | £200–350 | Early contracts; check your floor isn’t above this band |
| Mid-level | £350–600 | Delivers independently, the bulk of the market |
| Senior | £600–900 | Leads workstreams, deep specialism |
| Specialist / interim lead | £900–1,500+ | Scarce skills, regulated domains, interim leadership |
Indicative ranges for UK knowledge work — London and regulated sectors run higher, and inside-IR35 roles typically advertise a higher headline rate precisely because employment costs come out of it. If your computed floor sits above your market band, close the gap by shortening the bench, trimming costs, or moving upmarket — not by quietly absorbing it.
Questions contractors actually ask
How do I work out my contractor day rate?
Start from the annual take-home you want, add back the tax you’ll pay on the way there, then divide by the days you’ll actually bill — not 260. Holiday, bank holidays, and the weeks between contracts all come out first. This page does exactly that, and shows every step.
How many days a year does a contractor actually bill?
A five-day week gives 260 days on paper. Take off around 25 days of holiday, 8 bank holidays, and a realistic 4 weeks between contracts and you’re near 207 billable days. Assuming 260 — or even 230 — is the most common way contractors underprice a year.
Why is my inside IR35 take-home so much lower than the day rate suggests?
Because the rate an agency quotes for an inside-IR35 role is usually the assignment rate — a pot the umbrella company pays employment costs from before you’re paid anything. Employer National Insurance, the Apprenticeship Levy, and the umbrella’s own margin come out first, and only what’s left becomes your gross pay, which is then taxed through PAYE.
How much more should I charge for an inside IR35 contract?
Typically 10–20% more, because employer National Insurance and the umbrella margin come out of the rate before you’re paid. This calculator computes the exact inside rate that matches your outside-IR35 take-home, so you can quote a number instead of guessing.
Should I use a limited company or an umbrella company?
If a contract is outside IR35, a limited company usually leaves you with more, because you can take a small salary plus dividends and claim business expenses. If it’s inside IR35, an umbrella is normally the simpler route since the tax treatment is broadly the same either way. The right answer depends on your contracts and admin appetite — worth a conversation with an accountant.
Is a day rate better than an hourly rate?
In UK and much of European contracting, day rates are simply the norm — clients budget in days and agencies advertise in days. A day rate also stops you being nickel-and-dimed over a long afternoon. Agree upfront what a day means: 7.5 hours is common, and whether overtime is billable.
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