Freelance Day Rate Calculator
Most freelancers undercharge because they price like an employee. This calculator does the maths properly — accounting for the days you actually can't bill, your overheads, and your pension. UK figures, GBP.
From target salary
Enter the gross income you want from freelancing — the calculator works out what you need to charge.
Your day rate
Breakdown
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Sanity check — reverse calculator
Already charging a rate? Enter it and see the salary equivalent.
How the calculator works
The mistake almost every new freelancer makes is dividing their old salary by 220 working days. That number gives a rate only an employee could survive on — because it assumes the same paid holiday, the same employer pension contribution, the same paid sick leave, and zero overheads.
Step 1 — find your billable days
Start with a year (365 days) and subtract:
- Weekends — 104 days.
- Bank holidays — 8 in England and Wales, 9 in Scotland, 10 in Northern Ireland.
- Holiday — match the statutory minimum of 28 days (or take more, you've earned it).
- Sick / contingency — 5 days is conservative. You will get ill.
- Admin and marketing — pitching, invoicing, learning, networking, accounting. Typically 10–20% of remaining days.
After those, you're realistically looking at 180–200 actually-billable days, not 220.
Step 2 — pad your salary up to a cost-of-doing-business number
To match an employee on £60,000 a year you can't just earn £60,000 of revenue. You need:
- Salary: £60,000
- + Employer pension (≥ 8% of salary): £4,800
- + Business overheads: software, accountant, professional insurance, equipment, hosting — £2,000–£5,000 depending on what you do.
That's your cost base before income tax and NI even enter the picture.
Step 3 — divide by realistic utilisation
Even great freelancers don't fill 100% of their available days. Most aim for 70–85% utilisation. The calculator lets you set this — drop it lower if you're new or just starting on a niche.
Step 4 — sanity check against the market
The number the calculator gives you is what you need. The market sets what you can get. If the gap is uncomfortable, the levers are: lower overheads, more billable days (work harder, sell better, get repeat clients), or accept a lower target salary while you build up.
What this calculator deliberately ignores
Income tax and National Insurance — they're personal to you and depend on whether you operate as a sole trader or limited company. For that, use the self-employed tax calculator. The day-rate calculator gives you a gross day rate; the tax calculator tells you what you keep.
This is also strictly a freelance / sole-trader day rate. Contractors working inside IR35 face different maths because the engager handles tax — that's a separate guide.
Common pitfalls
- Quoting a "weekly rate" that's just 5× day rate. Buyers often expect a small discount for booking the whole week. Decide whether to discount or hold firm — but decide on purpose.
- Forgetting payment terms. A £500/day rate paid 60 days late is not the same as £500/day paid in 7 days. Late-paying clients are an effective rate cut.
- Working through holidays "to catch up." If you do this regularly, your real utilisation is higher than you think — and your rate is too low.
This is a planning tool, not financial advice. Tax outcomes depend on your structure and personal circumstances.
Related
- Invoice Generator — once you've set a rate, send a polished invoice.
- Tax Calculator — see take-home after income tax and Class 4 NI.
- Profit Margin Calculator — for productised services and packaged work.
- Expense Tracker — capture overheads as you incur them, so next year's calculator inputs are accurate.