Day Rate Calculator UK
Convert between contractor day rate and salary equivalent — gross and net take-home. Updated for 2026/27.
Using 2026/27 figures
Enter your day rate to see the equivalent annual salary and estimated take-home pay. Based on 230 billable days — the standard UK contractor working year.
Enter a target salary to find the equivalent day rate. Includes a contractor premium suggestion to account for the lack of paid holiday, sick pay and employer pension.
How are 230 working days calculated?
365 days in a year
Less 104 weekend days (52 weeks × 2)
Less 8 UK bank holidays
Less 23 days annual leave (standard UK allowance)
= 230 working days
As a contractor with no paid holiday, every day you are not billing is a day without income. Many contractors use 220–240 days depending on how much time they take off.
Wondering how IR35 affects your take-home? Our IR35 calculator compares inside vs outside IR35 — coming soon.
Common questions
How do I convert a day rate to a salary?
Multiply your day rate by the number of working days in the year. The standard UK working year is 230 days — 365 days minus weekends, 8 bank holidays and 23 days annual leave. A £500 day rate × 230 days = £115,000 gross annual equivalent.
What day rate do I need to match my salary?
Divide your target annual salary by your billable days. At 230 days, a £60,000 salary equivalent requires roughly £261 per day. As a contractor with no paid holiday or sick pay, your rate typically needs to be 20–30% higher than the permanent equivalent to achieve the same net income.
How many working days are in a UK year?
The standard UK working year is 230 days, based on 365 days minus 104 weekend days, 8 bank holidays and 23 days annual leave. Contractors who take less holiday will have more billable days available.
Is a contractor day rate the same as a salary?
No. A day rate is gross before tax, NI and expenses. Unlike a salary, it does not include paid holiday, sick pay, employer pension or employer NI contributions. Contractors typically need a rate 20–30% higher than a permanent employee equivalent to achieve the same net income.
How is take-home calculated for contractors?
Outside IR35 through a limited company, take-home is calculated by deducting corporation tax, then paying a combination of salary and dividends. Inside IR35 or on umbrella payroll, income tax and employee NI are deducted as with permanent employment.
This calculator provides estimates only and does not constitute tax or financial advice. Tax calculations are simplified and do not account for all circumstances. Always verify your tax position with a qualified accountant. Rates shown are for 2026/27.
Need an accountant who specialises in contractors?
Crunch and Gorilla Accounting both offer fixed-fee packages for limited company contractors — no surprise bills.
Compare contractor accountants →