Day Rate to Salary Calculator
Convert a contractor day rate into an equivalent salary, or a salary into the day rate you should be charging.
To convert a day rate to a salary, multiply the rate by the days you will actually bill: at 220 billable days a year, £400 a day is £88,000 of turnover before tax. To go the other way, divide salary plus employer costs by billable days: a £50,000 salary costs an employer £58,062.80 in 2026/27, or £263.92 a day.
Equivalent employee salary
£0.00
From £0.00 of contract income over 230 days
| Line | Rate | Amount |
|---|---|---|
| Contract income£0 a day x 5 days x 46 weeks | £0.00 | |
| Employer National Insuranceon salary above the secondary threshold | 15% | -£0.00 |
| Employer pensionminimum auto-enrolment contribution | 3% | -£0.00 |
| Sick pay, benefits and gaps | 5% | -£0.00 |
| Equivalent salary | £0.00 |
If the contract is inside IR35 the client or agency deducts tax and National Insurance before paying you, which changes this comparison; that is outside the scope of this calculator.
Common day rates as a salary, 2026/27
Assumes 5 days a week for 46 weeks, employer National Insurance at 15% on salary above £5,000, an employer pension contribution of 3% and a 5% buffer for sick pay, benefits and gaps.
| Day rate | Contract income | Employer NI | Pension | Buffer | Equivalent salary |
|---|---|---|---|---|---|
| £200 | £46,000 | £4,951.22 | £1,140.24 | £1,900.41 | £38,008.13 |
| £300 | £69,000 | £7,756.10 | £1,701.22 | £2,835.37 | £56,707.32 |
| £400 | £92,000 | £10,560.98 | £2,262.20 | £3,770.33 | £75,406.50 |
| £500 | £115,000 | £13,365.85 | £2,823.17 | £4,705.28 | £94,105.69 |
| £600 | £138,000 | £16,170.73 | £3,384.15 | £5,640.24 | £112,804.88 |
| £750 | £172,500 | £20,378.05 | £4,225.61 | £7,042.68 | £140,853.66 |
| £1,000 | £230,000 | £27,390.24 | £5,628.05 | £9,380.08 | £187,601.63 |
Source: HMRC: Rates and thresholds for employers 2026 to 2027; HMRC: Rates and allowances for National Insurance contributions. Last updated .
Source: HMRC: Rates and thresholds for employers 2026 to 2027; GOV.UK: Income Tax rates and Personal Allowances. Last updated .
How to use the day rate calculator
How many billable days are there in a year?
Fewer than you think. Start with 365, remove weekends and bank holidays, then the holiday you would take as an employee, then the days you will not bill because of illness, training or a gap between contracts. The calculator lets you change each line.
| Step | Days |
|---|---|
| Days in the year | 365 |
| Less weekends | −104 |
| Less bank holidays (England and Wales) | −8 |
| Less holiday | −25 |
| Less sick days, training and gaps | −8 |
| Billable days | 220 |
How do I turn a day rate into a salary?
Multiply the rate by billable days: £400 × 220 = £88,000. That is turnover, not pay. Out of it you fund your own pension, equipment, insurance, accountancy and the holiday an employer would have paid for, and then tax. Run the figure through the self assessment calculator if you trade as a sole trader, or the dividend vs salary calculator if you work through your own company, to see what you keep.
How do I turn a salary into a day rate?
Work out what the employee costs the employer, then divide by billable days. For a £50,000 salary in 2026/27:
- Employer National Insurance at 15% on pay above £5,000: £6,750.00
- Minimum employer pension at 3% of qualifying earnings between £6,240 and £50,270: £1,312.80
- Total cost £58,062.80 ÷ 220 days = £263.92 a day
That is the floor, the rate at which the client pays the same as employing you. Contractors usually charge more because they carry the risk of empty weeks and get no notice period, sick pay or redundancy pay.
What else should the rate cover?
- Professional indemnity and public liability insurance
- Laptop, software and phone
- Accountancy, company filing and bookkeeping time
- Unpaid time spent finding the next contract
If a role is inside IR35 the client or agency deducts tax and National Insurance like an employer, so compare that rate with a salary rather than with an outside IR35 day rate. Put the agreed figure on a quote before you start.
Frequently asked questions
- How many billable days should I assume?
- Most contractors plan on around 220 days once weekends, 8 bank holidays, 25 days of holiday and a few unbilled days are removed. If you expect gaps between contracts, use a lower figure. The calculator lets you set the number directly.
- What day rate equals a £50,000 salary?
- About £263.92 a day at 220 billable days, once employer National Insurance of £6,750.00 and a minimum pension of £1,312.80 are added to the £50,000 salary. That matches the employer’s cost, not what you would take home. Add a margin for risk and unpaid time on top.
- Is a day rate paid gross or net?
- Outside IR35 it is paid gross and you settle your own tax. Inside IR35, or through an umbrella company, tax and National Insurance are deducted before you are paid. Always ask which applies before comparing two rates.
- Should I add VAT to my day rate?
- Only if you are VAT-registered. Quote the rate excluding VAT and state that VAT at 20% will be added, because business clients normally reclaim it. Remember that your rolling 12 month turnover counts towards the £90,000 registration threshold.
- How do I convert an hourly rate?
- Multiply the hourly rate by the hours you bill in a day, usually 7.5 or 8, to get a day rate, then use the calculator as normal. Do not multiply by hours worked if you only bill some of them. Going the other way, divide the day rate by billable hours.
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Read next
- When should a sole trader become a limited company?The profit level where a limited company starts to save tax, the extra admin it brings and the non-tax reasons people incorporate.
- How to invoice as a sole traderA step by step guide to writing, numbering, sending and chasing invoices as a UK sole trader, with a worked example.
Cite this page: “Day Rate to Salary Calculator”, SoleKit, https://solekit.co.uk/day-rate-calculator