This calculator helps you determine your effective day rate based on your salary, working days per year, and desired annual income.
Understanding Your Day Rate
Many freelancers and contractors often quote their services using a "day rate." This is the amount they charge clients for a full day's work. While it might seem straightforward, understanding how your day rate relates to your overall annual income is crucial for setting competitive yet profitable pricing.
Your annual salary is the total amount you earn in a year before any deductions. When calculating a day rate from a salary, you need to consider how many days you realistically work in a year. This typically excludes weekends, public holidays, and any annual leave you might take.
The formula used by this calculator is:
Day Rate = Annual Salary / Working Days Per Year
By inputting your annual salary and the number of days you typically work in a year, you can get a clear picture of your effective day rate. This can be a valuable benchmark when setting your freelance rates, ensuring you align your daily earnings with your desired annual income goals. Remember that this calculation doesn't include potential business expenses, taxes, or benefits you might receive as a permanent employee, so consider these factors when finalizing your pricing.