UK contractor estimate
Select the status provided for your engagement; this tool does not determine IR35 status.
Revenue breakdown
How to Calculate Your Contractor Day Rate Revenue
Estimate your annual contractor revenue by choosing a day or hourly rate and modelling the working pattern, holiday, and time available for billable work.
Choose your rate type
Select Day rate if you charge per working day, or Hourly rate if your contract is priced by the hour. The calculator uses the selected rate as the basis for the revenue estimate.
Enter your rate and working hours
Enter your gross day rate or hourly rate. If you use an hourly rate, enter the number of hours you work per day so it can be converted into a daily and annual figure.
Set your working pattern
Enter the number of days you expect to work each week and the number of weeks you expect to work during the year. Reduce the weeks for planned breaks or likely gaps between contracts.
Allow for holiday days
Enter the holiday days you plan to take. Contractors do not normally receive paid holiday, so the calculator subtracts these days from the available working days when estimating annual gross revenue.
Review your revenue estimate
Select Calculate to see estimated annual, monthly, and weekly gross revenue, along with the working days used in the calculation. Check that the billable-day assumption reflects your realistic contract schedule.
Compare the result with permanent employment
Use the permanent-salary equivalent as a starting point, then account for your own Income Tax, National Insurance, pension, business expenses, unpaid sick leave, training, equipment, and gaps between contracts. This tool shows gross revenue, not take-home pay.
Frequently Asked Questions
What is a typical contractor day rate in the UK?
Day rates vary widely by industry and experience. IT contractors typically earn £400-£800 per day, while management consultants may earn £600-£1,200. Junior contractors may start at £200-£300 per day.
How many days should I work per year as a contractor?
Most full-time contractors aim for 220-240 billable days per year, allowing 20-40 days for holiday, sick days, and gaps between contracts. Part-time contractors should adjust proportionally.
Do contractors get paid holiday?
No. Contractors are self-employed or work through their own limited company, so they do not receive paid holiday. You must factor holiday time into your day rate to ensure you earn enough to cover time off.
How do I calculate my hourly rate from my day rate?
Divide your day rate by the number of hours you work per day. A typical working day is 7.5 hours, so a £500 day rate equals approximately £66.67 per hour.
What's the difference between gross revenue and take-home pay?
Gross revenue is your total income before any deductions. Take-home pay is what you actually receive after Income Tax, National Insurance, pension contributions, and business expenses. Use the UK Salary Calculator to estimate take-home pay.
Should I use a day rate or hourly rate?
Day rates are more common for longer contracts and give a clearer picture of daily earnings. Hourly rates are better for short assignments or when you need to track time precisely. This calculator supports both.