🇬🇧 Built for the UK — Free forever

What should you
actually charge?

Most UK freelancers undercharge by 30–50%. This calculator factors in National Insurance, Income Tax, pension, IR35 considerations, and your real expenses to find your true day rate.

Calculate my rate ↓
Ad space
💰 Income Goal
What do you want to take home annually after tax? Think of the net salary you'd accept at a permanent role.
£
⏱ Working Time
Be realistic — you won't bill every day. Account for admin, marketing, gaps between contracts, and unbillable time.
4 days
5 wks
7.5 hrs
🏥 Benefits & Expenses
As a freelancer, you pay for everything an employer used to cover. No employer pension, no sick pay, no holiday pay.
£
£
£
£
£
📈 Profit Margin
Buffer for gaps between contracts, slow months, and business growth.
15%
Your Minimum Freelance Rate
£0
per day
£0
Per Hour
£0
Per Week
£0
Per Month
£0
Annual Gross

How We Got There

Your target take-home pay £0
Class 2 National InsuranceFlat rate: £3.45/week for self-employed + £0
Class 4 National Insurance6% on profits between £12,570–£50,270, then 2% above + £0
Income Tax20% basic, 40% higher, 45% additional rate + £0
Pension contributions + £0
Insurance + £0
Software & tools + £0
Other business expenses + £0
Accountant fees + £0
Profit marginBuffer for gaps, growth, and emergencies + £0
Total you need to earn £0
÷ Billable days per year 0 days
💡
Ad space
🇺🇸 United States 🇬🇧 United Kingdom 🇨🇦 Canada 🇦🇺 Australia

Why Most UK Freelancers Undercharge

If you just convert a salary to a day rate by dividing by 260 working days, you'll be out of pocket. Here's what you're forgetting.

01

National Insurance

As an employee, your employer pays 13.8% Employer's NI on top of your salary. As self-employed, you pay Class 2 and Class 4 NI yourself. On £50K profit that's roughly £2,700.

02

No Benefits

No employer pension contributions (typically 3–5% of salary), no sick pay, no holiday pay, no parental leave. You fund it all — or go without.

03

Unbillable Time

You won't bill 5 days a week, 52 weeks a year. Between finding clients, admin, gaps between contracts, and holidays — most freelancers bill 180–200 days a year, not 260.

Frequently Asked Questions

How do I calculate my freelance day rate in the UK?
Start with your desired annual take-home pay. Add National Insurance (Class 2 and Class 4), Income Tax, pension contributions, insurance, business expenses, and a profit margin. Then divide by your realistic billable days per year (typically 180–200 days, not 260). This gives you your minimum day rate.
What is a good freelance day rate in the UK?
It varies hugely by industry. UK IT contractors typically charge £350–£700/day, designers £250–£500/day, and consultants £400–£1,000+/day. The key is to calculate YOUR number based on your expenses, taxes, and income goals rather than guessing from market averages.
Do I need to register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in a 12-month period. Below that threshold, registration is voluntary. Some freelancers register voluntarily because it lets them reclaim VAT on business purchases. If you charge VAT, add 20% on top of your day rate — but remember, that VAT isn't your money; it goes to HMRC.
What is IR35 and how does it affect my rate?
IR35 is legislation that determines whether a contractor is genuinely self-employed or effectively an employee for tax purposes. If you're deemed "inside IR35," you'll pay similar taxes to an employee (PAYE, Employee NI) and your take-home will be significantly lower. Many contractors inside IR35 increase their day rate by 15–25% to compensate. Our calculator assumes you're operating outside IR35 as a sole trader.
How many days a year can I realistically bill?
Most UK freelancers bill 180–210 days per year. Start with 260 working days, subtract 28 days holiday (the statutory minimum for employees), subtract 5–10 days for sickness, and subtract 20–40 days for gaps between contracts, admin, and business development. That typically leaves 180–200 billable days.
Should I operate as a sole trader or limited company?
As a sole trader, tax is simpler — you pay Income Tax and Class 2/4 NI on your profits. As a limited company, you can pay yourself a combination of salary and dividends, which can be more tax-efficient above roughly £40,000–£50,000 profit. However, limited companies have more admin, accountancy costs, and reporting requirements. Speak with an accountant about which structure suits your situation.
Ad space