Day rate to salary calculator
See what your freelance day rate works out as a year, what you'd take home as a sole trader, and the employed salary it's really equal to. Or work it the other way round.
Work out your numbers
The rule of thumb
- Freelancers typically bill around 45 to 46 weeks a year once you take out holidays, bank holidays and gaps between work.
- A day rate of £300 at 5 days a week for 46 weeks is £69,000 a year before tax and costs.
- Sole traders pay slightly less National Insurance than employees, but get no holiday pay, sick pay or employer pension.
Estimates for sole traders in England, Wales and Northern Ireland using 2026/27 Income Tax and National Insurance rates. Doesn't include student loans, pension contributions or Scottish tax rates, and doesn't cover limited companies. Not tax or financial advice.
How the calculator works
- Turnover: day rate × days a week × weeks worked.
- Profit: turnover minus your business costs.
- Tax: Income Tax at 20%, 40% and 45% above the £12,570 personal allowance, plus Class 4 National Insurance at 6% on profits between £12,570 and £50,270 and 2% above.
- Equivalent salary: the employed salary that would leave you with the same take-home pay after Income Tax and employee National Insurance (8% and 2%).
2026/27 rates used
| Rate | Applies to | |
|---|---|---|
| Personal allowance | 0% | First £12,570 (reduces above £100,000) |
| Basic rate | 20% | £12,571 to £50,270 |
| Higher rate | 40% | £50,271 to £125,140 |
| Additional rate | 45% | Over £125,140 |
| Class 4 NI (self-employed) | 6% / 2% | £12,570 to £50,270 / above |
| Class 1 NI (employees) | 8% / 2% | About £12,570 to £50,270 / above |
Frequently asked questions
How many days a year do freelancers actually work?
A full year is 52 weeks. Take off around 5 to 6 weeks for holidays and bank holidays, plus some time between contracts, and most freelancers bill 44 to 46 weeks. If you're just starting out, assume fewer.
How do I convert a salary to a day rate?
Use the "I know the salary I want" tab. It works out the day rate you'd need, at the days and weeks you choose, to take home the same as that salary after tax. Many freelancers then add 20 to 30% on top to cover the holiday pay, pension and sick pay an employer would provide.
Is this right for a limited company contractor?
No. Limited company directors usually pay themselves a mix of salary and dividends, which is taxed differently. This calculator is for sole traders.
Do I need to register for VAT?
If your turnover goes over £90,000 in any 12 months, yes. A £400 day rate for 46 weeks is £92,000, which is over. Check with our VAT checker.
When do I pay the tax?
Through Self Assessment, by 31 January after the tax year ends, often with payments on account in January and July. See your Self Assessment dates.
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