Convert your daily rate into weekly, monthly, and annual gross income.
£
days
weeks
days
Estimated Annual Gross£0.00
Average Monthly Gross£0.00
Average Weekly Gross£0.00
Total Billable Days0 days
function calculateUKDayRate() {
// 1. Get input values
var dayRate = parseFloat(document.getElementById('dayRate').value);
var daysPerWeek = parseFloat(document.getElementById('daysPerWeek').value);
var weeksOff = parseFloat(document.getElementById('weeksOff').value);
var bankHolidays = parseFloat(document.getElementById('bankHolidays').value);
// 2. Validate inputs
if (isNaN(dayRate) || dayRate < 0) {
alert("Please enter a valid Day Rate.");
return;
}
if (isNaN(daysPerWeek) || daysPerWeek 7) {
daysPerWeek = 5;
}
if (isNaN(weeksOff) || weeksOff < 0) {
weeksOff = 4;
}
if (isNaN(bankHolidays) || bankHolidays < 0) {
bankHolidays = 8; // Standard UK bank holidays
}
// 3. Logic Constants
var totalWeeksInYear = 52;
// 4. Calculate Total Billable Days
// Logic: (Total weeks – Weeks off) * Days/week – Bank Holidays (if they fall on work days)
// Note: Usually bank holidays are separate. If a contractor doesn't work bank holidays, they are unpaid days.
var workingWeeks = totalWeeksInYear – weeksOff;
var potentialDays = workingWeeks * daysPerWeek;
// Subtract bank holidays only if they reduce the billable count.
// Assuming the 'weeks off' input doesn't already include bank holidays.
var totalBillableDays = potentialDays – bankHolidays;
if (totalBillableDays < 0) totalBillableDays = 0;
// 5. Calculate Gross Incomes
var annualGross = totalBillableDays * dayRate;
var monthlyGross = annualGross / 12;
var weeklyGross = annualGross / 52;
// 6. Formatting Helper
var formatter = new Intl.NumberFormat('en-GB', {
style: 'currency',
currency: 'GBP',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
// 7. Update DOM
document.getElementById('resultAnnual').innerHTML = formatter.format(annualGross);
document.getElementById('resultMonthly').innerHTML = formatter.format(monthlyGross);
document.getElementById('resultWeekly').innerHTML = formatter.format(weeklyGross);
document.getElementById('resultDays').innerHTML = totalBillableDays.toFixed(1) + " days";
// Show results
document.getElementById('calc-results').style.display = "block";
}
Understanding Your UK Contractor Day Rate
Calculating your potential income as a contractor or freelancer in the UK involves more than just multiplying your day rate by 365. Unlike permanent employees, contractors do not typically get paid for holidays, sick days, or bank holidays. This UK Day Rate Calculator helps you determine your true annual gross income by factoring in these non-billable periods.
Pro Tip: Most UK contractors calculate based on a 44 to 46-week working year to account for holidays, bank holidays, and gaps between contracts.
How to Calculate Annual Salary from Day Rate
To manually convert your day rate to an equivalent salary, use the following formula logic:
Step 1: Determine your weekly working days (usually 5).
Step 2: Estimate your weeks off per year (e.g., 4 weeks holiday + 1 week sick leave = 5 weeks).
Step 3: Subtract UK Bank Holidays (typically 8 days).
Step 4: Calculate Total Billable Days: ((52 weeks - Weeks Off) × Days Per Week) - Bank Holidays.
Step 5: Multiply Total Billable Days by your Day Rate.
Why Your Day Rate Should Be Higher Than a Permanent Salary
If you are moving from permanent employment to contracting, you should aim for a day rate that is significantly higher than your previous daily breakdown. This "contractor premium" covers:
Lack of Benefits: No employer pension contributions, paid holiday, or sick pay.
Job Insecurity: The risk of having no work between contracts (bench time).
Business Costs: Accountancy fees, insurance (Professional Indemnity, Public Liability), and equipment costs.
Tax Complexity: Depending on your IR35 status, your tax liability may vary.
Inside vs. Outside IR35
While this calculator provides your Gross Income, your take-home pay depends heavily on your IR35 status:
Outside IR35: You operate as a genuine business. You can often pay yourself a small salary and draw the rest as dividends, which is tax-efficient.
Inside IR35: You are taxed similarly to an employee (PAYE), meaning National Insurance and Income Tax are deducted at source, often reducing net income significantly.
Use the figures generated above as a baseline for negotiation, but always consult with a qualified accountant to understand your net retention.