CONTRACTOR PRICING
Contractor day rate calculator
Turn an annual income target into a defensible day rate using realistic utilisation and business costs.
WHAT THIS CALCULATOR DOES
What this contractor day rate calculator does
Back-calculate a day rate from the annual income you want, billable days and expected business costs.
Required day rate
- Required annual contract revenue
- £92,222
- Equivalent 7.5-hour rate
- £56
- Billable days
- 220
This is a commercial pricing target before deciding whether the engagement is PAYE, umbrella, inside IR35 or outside IR35.
What this calculator does
Use this to reverse an annual income target into a day rate while allowing for downtime, expenses and a risk buffer. It is useful when you want to quote a contractor rate that survives realistic utilisation rather than a perfect billable year.
Why the result can differ
Actual contractor pricing varies with non-billable time, expenses, contract length, holiday cover and how many days you can really invoice. IR35 status and employer/agency deductions can also change the final economics.
SOURCES & REVIEW
Checked against official guidance
Last reviewed 14 July 2026 · Rule version GB-2026.27.1
Daily/weekly source monitoring. If a source changes, the affected rule set is reviewed before publication.
All source links are kept visible so you can verify the figures used on this page.
GOV.UK: Employment status ↗GOV.UK: Off-payroll working ↗Sources, methodology and update policy →Report an issue or correction →WHY RESULTS DIFFER
Why two users can see different results
Why the result can differ
Different tax codes, payroll periods, Scottish bands, pension methods or lender assumptions can change the outcome.
One-off bonuses, pay frequency, overpayments, allowances and reliefs can move the result away from a simple annual estimate.
Where a rule depends on eligibility or legal status, this page shows an estimate and links to official guidance.
This section is intentionally repeated on key tools so the explanation stays near the result instead of being hidden in a separate policy page.
COMMON QUESTIONS
Frequently asked questions
How many billable days should I use?
Start below the calendar working-day total to allow for holidays, sickness, training, administration and gaps between contracts.
Does the day rate determine IR35 status?
No. Status depends on the working arrangement and facts, not the rate charged.