The method
How it is worked out
Day rate = ((income + pension) ÷ (1 − tax) + costs) ÷ ((260 − holidays) × (1 − unbillable))
- unbillable
- Days spent selling, invoicing and learning that no client pays for
Freelance Day Rate Calculator
Set a day rate that covers your target income, business costs, unbillable time, holidays and tax, then compare it with employment. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- UtilisationMost freelancers bill fewer days than they plan in year one.
- VAT / sales taxRegistering may change what you quote.
- Rate anchorsThe market rate may be higher than your floor; charge the market.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Freelance Day Rate Calculator
Set a day rate that covers your target income, business costs, pension, holidays, unbillable time and tax, then compare it with a salaried offer once employer benefits are counted.
How it works and an example to tryShow less
How to use the result
Required revenue is income plus pension grossed up for tax, plus business costs. Billable days are working days less holidays, reduced by the unbillable share. Day rate is revenue over billable days. A salaried offer is uplifted for employer pension, paid leave and sick pay for comparison.
Example to try
Wanting £55,000 take-home, £5,000 pension, £6,000 costs, 30 days off, 25% unbillable and 28% tax needs about £89,000 of revenue over 172 billable days: £518 a day. A £62,000 job is worth about £77,500 fully loaded, so freelancing is ahead.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
New freelancers and contractors, consultants revisiting rates and employees weighing an offer against going independent.
Mistakes worth avoiding
- Pricing from an hourly wage without allowing for unbillable time.
- Forgetting to fund your own pension and sick pay.
- Undercharging in year one and finding it hard to raise later.
Questions
What does the Freelance Day Rate Calculator do?
Set a day rate that covers your target income, business costs, unbillable time, holidays and tax, then compare it with employment.
How should I use the result?
Required revenue is income plus pension grossed up for tax, plus business costs. Billable days are working days less holidays, reduced by the unbillable share. Day rate is revenue over billable days. A salaried offer is uplifted for employer pension, paid leave and sick pay for comparison.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a freelance day rate calculator?
Pricing from an hourly wage without allowing for unbillable time. Forgetting to fund your own pension and sick pay. Undercharging in year one and finding it hard to raise later.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.