Freelance Day Rate Calculator
Work out the day rate and hourly rate you need to charge as a freelancer or contractor to reach your target income, once holidays, bank holidays, sick days, admin time and business costs are allowed for.
About this tool
An employee is paid for 52 weeks a year, including holidays and sick days. A freelancer is only paid for the days they bill, and some of every week goes on admin, sales, invoicing and finding the next client. Divide your target income by 260 working days and you'll undercharge; this calculator starts from the days you can actually bill. England and Wales have 8 bank holidays a year (Scotland usually 9 and Northern Ireland 10); if you work fewer than five days a week they're scaled down to match.
Add your yearly business costs, such as equipment, software, insurance, accountancy and travel, because the rate has to pay for those before it pays you. The target is before tax: as a sole trader you'll pay Income Tax and National Insurance on your profit, and through a limited company you'll pay Corporation Tax and dividend tax. Inside IR35, the public sector or an agency will deduct tax for you. Your figures are remembered on this device.