Day Rate
Convert between annual salary and daily contractor rates
📅 Day Rate Calculator
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Day Rate Calculator: Convert Between Daily and Annual
The day rate calculator converts between daily rates and annual salary equivalents for contractors, freelancers, and temporary workers. Whether you are evaluating a contract opportunity or comparing permanent employment offers, understanding the true value of a day rate is essential for informed career decisions.
Standard UK working days: 260 per year (52 weeks × 5 days), minus 28 days holiday = 232 billable days. Contractors typically bill 220-240 days depending on time between contracts.
Day Rate to Annual Salary Equivalents
| Day Rate | Gross Annual (230 days) | Perm Equivalent (inc. benefits) |
|---|---|---|
| £150 | £34,500 | ~£28,000 perm |
| £250 | £57,500 | ~£46,000 perm |
| £350 | £80,500 | ~£64,000 perm |
| £500 | £115,000 | ~£92,000 perm |
| £650 | £149,500 | ~£120,000 perm |
The "permanent equivalent" reduces the gross annual by approximately 20% to account for benefits that contractors must fund themselves: pension (8%), holiday (10.7%), sick pay, and employer NI savings.
Factors Affecting Your Day Rate
Location (London rates 20-40% higher), sector (fintech and pharma pay premiums), contract length (shorter contracts command higher rates), IR35 status (inside IR35 reduces take-home by 15-25%), and specialism all influence day rates. Use our hourly rate converter for hourly comparisons, or the pro rata calculator for permanent part-time roles.
How to Use the Day Rate
Using our day rate is straightforward. Follow these steps to get accurate results for your situation:
- Enter your full-time salary — This is the annual salary for the equivalent full-time role, before any deductions. You'll find this on the job advert or your contract.
- Set the full-time hours — The standard working week for the role. Most UK employers use 37.5 or 40 hours per week.
- Enter your actual hours — Your contracted weekly hours. This is the number you actually work.
- Click Calculate — The day rate displays your results instantly, with annual, monthly, weekly, daily, and hourly breakdowns.
Worked Example: Day Rate Conversion
A contractor is offered a day rate of £350. Here's how to compare it with a permanent salary:
Annual equivalent: £350 × 5 days × 52 weeks = £91,000
Minus holidays (28 days): £350 × 224 working days = £78,400
But contractors must also account for:
- No employer pension (typically 3-5% = ~£2,000-4,000)
- No sick pay, parental leave, or other benefits
- Business costs (insurance, accountancy, equipment)
- Gaps between contracts (typically 10-20% downtime)
A fair permanent equivalent for a £350/day contract is roughly £55,000-£65,000 once you factor in all benefits. Alternatively, to match a £50,000 permanent salary, you'd need a day rate of approximately £280-£320.
Tips for Using This Calculator
- Always use gross salary: Enter the salary before tax and deductions — the calculator works with gross figures.
- Check your contract: Your employment contract should state your full-time equivalent hours. Common UK standards are 35, 37, 37.5, and 40 hours per week.
- Know your rights: Under the Part-time Workers Regulations 2000, part-time employees must receive the same hourly rate, holiday entitlement (pro rata), and benefits as full-time colleagues.
- Tax personal allowance: For 2025/26, the first £12,570 of earnings is tax-free. If your pro rata salary falls below this, you pay no income tax at all.
- National Insurance: Employee NI is 8% on earnings between £12,570 and £50,270 (2025/26 rates). Check HMRC NI rates for the latest figures.
All calculations on this page follow ACAS pro rata pay guidelines and are consistent with the UK Employment Rights Act 1996. Tax figures use HMRC 2025/26 rates. The April 2025 National Living Wage of £12.21/hour is applied where relevant.
Related Salary Calculators
Our day rate is just one of the tools available on ProRataCalculator. You may also find these useful: pro rata calculator, term-time salary calculator, overtime calculator.
Last updated: February 2026. Verified against HMRC 2025/26 tax rates and April 2025 National Living Wage (£12.21/hour).
Frequently Asked Questions
Multiply your day rate by the number of working days in a year (typically 232, which is 260 weekdays minus 28 days holiday). For example: £400/day × 232 = £92,800 equivalent salary.
Day rates vary hugely by industry and role. UK averages range from £150-250 for junior roles to £500-1,000+ for senior specialists. Contractors typically earn 15-30% more than permanent equivalents to cover lack of benefits.
Typically no. Contractors on a day rate are only paid for days worked. You should factor in approximately 28 days of unpaid time off per year when comparing day rates to annual salaries.
Divide your day rate by the standard working hours per day (usually 7.5 or 8 hours). For example: £400/day ÷ 8 hours = £50/hour.