What day rate matches my current salary?
A permanent salary is worth more than it looks. Employer NI, pension matching, paid holiday, paid sick, employer liability insurance, equipment and training all cost money an employer picks up — and that you'll need to self-fund as a contractor. This calculator rebuilds the full cost and translates it into the day rate you need to come out even (plus a 20% overhead buffer).
- Typical uplift: 1.3-1.5× daily salary equivalent. Lower means you're subsidising the switch; higher is normal for roles with specialist skills, risk or short contract windows.
- Add further margin if you're switching into IR35-outside work (short contract windows, higher sales effort).
Salary to contractor rate calculator
What this calculator does (and doesn't) include
Included: gross salary, employer NI (13.8% above the secondary threshold), employer pension at your chosen %, holiday days and sick days valued at pro-rated daily salary, and a 20% overheads buffer for the costs of running a business (accountant, software, insurance, equipment).
Not included: contract-length risk (short gigs need higher margin), IR35 status implications (check IR35 status), limited company take-home differences (use the take-home calculator for Ltd director maths), bonus or share scheme value.