FT

IR35 & Contracting

Contractor Day Rate Calculator

Plan a sustainable day rate from personal income, overhead, non-billable days, utilization, savings, and profit buffer.

Desired annual personal income
Annual business expenses
Unpaid holiday days
Sick days
Training days
Administrative days
Working days per week
Billable utilization (%)
Pension or savings target
Profit buffer (%)

Recommended day rate

£523.67

182.8 billable days per year.

Total potential working days
260.0
Annual billable days
182.8
Break-even day rate
£65.66
Minimum day rate
£476.06
Monthly revenue target
£7,975.00
Annual revenue target
£95,700.00
Daily overhead allocation
£32.83
Pension or savings allocation
£32.83
Profit buffer amount
£8,700.00

How the day rate is calculated

The calculator subtracts non-billable days from available working days, applies billable utilization, then divides your revenue target by billable days. The revenue target includes desired income, business expenses, savings or pension target, and profit buffer.

FAQ

Why validate non-billable days?

Holiday, sickness, training, and admin days cannot exceed the working days available in the year.

Should I quote the recommended rate exactly?

Use it as a planning anchor, then adjust for market rates, contract risk, payment terms, IR35 status, and client value.

Related tools

IR35 Day Rate Calculator, Contractor Take-Home Pay Calculator, and Umbrella vs Limited Company Calculator.

Disclaimer

Results are estimates and are not tax, financial, legal, employment, or pricing advice.