Freelancer Day Rate Calculator

Take your desired annual salary, add 30% for tax/NI, add your annual expenses, divide by your billable days (typically 220). Our calculator does this automatically and adjusts for your specific situation.

Average UK freelance day rates range from £250–£400 for junior roles to £500–£1,000+ for senior technical roles. It varies significantly by skill, industry, and experience. Use our salary-to-hourly calculator to compare your day rate against an equivalent permanent salary.

You must register for VAT if your turnover exceeds £90,000. Below this threshold it is optional, but registering voluntarily can make you appear more professional to VAT-registered business clients and allows you to reclaim VAT on business purchases.

Sole trader is simpler to set up and run. A limited company becomes more tax-efficient roughly when your profits exceed £30,000–£35,000 per year — at that point paying yourself salary plus dividends saves meaningful amounts of tax versus sole trader income tax. There are also IR35 implications if you work via contracts through a limited company.

A standard UK working year has 260 weekdays. Deduct 25 days holiday, 8 bank holidays, and allow 5–10 days for illness or admin, and you have roughly 220–230 billable days. Many freelancers budget 200 days to account for time finding new clients and business development.

Use the freelance salary calculator approach: multiply your day rate by your billable days (e.g. £400 × 200 days = £80,000 gross contract income), then subtract 30–35% for tax and NI, and deduct expenses. This gives your net income equivalent. Generally, divide your annual salary target by 200 and add 30% to find your required day rate.