Free Tools by Billion Studio  ·  Built for UK Freelancers & Contractors
Free UK Freelancer Tool

The "True Cost"
Day Rate Calculator

Most freelancers undercharge — because they forget tax, pension, sick days, and the hours spent not billing. Find your real minimum day rate in 3 steps.

1Life Goals
2Business Costs
3Your Time
✓Your Rate
💷

Day Rate Calculator

3 steps · Under 2 minutes · No sign-up needed

Step 1 — Your Life Goals
£
The net amount you want landing in your bank each year, after tax
% of gross income set aside 5%
0%5% (min rec.)10%20%
No employer pension as a freelancer — you fund this entirely yourself
% saved from each invoice 25%
15%25% (typical)40%
Covers Income Tax + National Insurance. Aim for 25–28% at basic rate; 35%+ above £50,270
💡 Remember: As a freelancer you're responsible for both employee and employer NI contributions — your gross income must be significantly higher than your take-home.
Step 2 — Your Business Overheads
Enter your estimated annual spend. These costs come straight off your income — they're why your day rate needs to be higher than you think.
🛡️
Professional Insurance
PI, Public Liability, Cyber
£
💻
Software & Tools
Adobe, Figma, Microsoft 365, Zoom…
£
📊
Accountancy & Legal
Annual accountant, contracts
£
📣
Marketing & Networking
LinkedIn Premium, website hosting, events
£
🏢
Workspace
Co-working, home office overheads
£
📦
Other Expenses
Equipment, training, travel
£
Total annual business costs £3,100
Step 3 — Your Billable Time
UK statutory minimum is 28 days (inc. bank holidays)
UK average is ~7 days per year
Days on admin, proposals & biz dev 1 day
0 (fully booked)1 (typical)3 (new)
Every non-billable day per week = ~50 days/year not earning
Your True Day Rate
✦ Your Magic Number
£—
minimum day rate
Hourly: —
Half-day: —
— billable days/yr
The Reality Check
—
Real take-home / hour
—
Gross annual turnover needed
—
Tax & NI set aside
—
Annual pension
🏢
—
Where every £1 of your gross income goes
—
per day
Full annual breakdown
Take-home salary—
Tax & NI buffer—
Pension contribution—
Business costs—
Total gross income needed—

📊 UK Freelancer Benchmarks

£350
Avg. day rate
173
Avg. billable days
£3,100
Avg. annual costs
28%
Typical tax buffer

🔍 Hidden Costs Freelancers Miss

  • Both sides of NI — you pay employee + effectively employer contributions
  • No sick pay — a week off costs you your full day rate × 5
  • No employer pension — most employed people get 3–5% on top from their employer
  • Unpaid admin — proposals, invoicing, chasing, onboarding new clients
  • Gaps between projects — rarely 100% booked all year long
  • Professional training — keeping skills sharp costs time and money

💡 How to Use Your Number

  • This is your floor rate — never accept less
  • Check market rates on LinkedIn, Glassdoor & recruiter listings
  • Add 15–20% as your opening ask — negotiation is expected
  • Raise your rate every 12 months — inflation erodes it silently
  • Niche specialists can charge 2–3× the generalist rate
Coming Soon from Billion Studio

Get paid on time, every time

Billdocket helps UK freelancers send professional invoices with automatic payment reminders — spend less time chasing, more time billing.

⚠️ Disclaimer: This calculator provides estimates for guidance only. The tax buffer is a saving target, not a precise tax calculation — your actual liability depends on your individual circumstances, allowable expenses, and other income sources. Always consult a qualified accountant. This tool does not constitute financial or tax advice.