Calculate salary or day rate
Choose whether you want to convert salary to a day rate, or day rate to annual income. Adjust working days to reflect paid holiday, unpaid time off or gaps between contracts.
How the day rate calculator works
A day rate is the amount paid for one working day. To convert salary into a day rate, divide annual salary by the number of paid working days you want to use.
To convert a day rate into annual income, multiply the day rate by paid working days. For contractor-style comparisons, subtract unpaid days and optional annual costs to get a more realistic gross-after-cost estimate.
salary to day rate:
day rate = annual salary ÷ paid working days
day rate to annual:
annual income = day rate × paid working days
contractor-style estimate:
after-cost annual equivalent =
day rate × (working days - unpaid days) - annual costs
Employee salary vs contractor day rate
A salary and a day rate are not directly equivalent. An employee salary may include paid holiday, sick pay, employer pension contributions, benefits, notice rights and redundancy protection. A contractor day rate may need to cover unpaid time, pension, tax, insurance, accountancy and gaps between contracts.
This calculator is useful for a rough comparison, but it does not calculate IR35 status, corporation tax, dividend tax, employer costs, VAT or personal tax. Treat the result as a planning estimate.
Important: a higher day rate does not always mean a better overall package. Compare paid days, unpaid gaps, benefits, pension and take-home pay before deciding.
Example day rate calculations
These examples use gross amounts before tax. They show why the number of working days makes a big difference.
| Input | Working days | Calculation | Result |
|---|---|---|---|
| £52,000 salary | 260 days | £52,000 ÷ 260 | £200/day |
| £400/day | 220 days | £400 × 220 | £88,000/year |
| £45,000 salary | 232 days | £45,000 ÷ 232 | £193.97/day |
How many working days should you use?
A full-time employee working 5 days per week has around 260 weekdays in a 52-week year before bank holidays and annual leave are considered. For employee salary comparisons, 260 is a simple default.
For contractors, the paid days may be lower. You may want to deduct holiday, sick days, bank holidays, training days and gaps between contracts. A day rate that looks strong at 260 days can look very different at 220 or 200 paid days.
Day rate to hourly equivalent
A day rate can be converted into an estimated hourly rate by dividing the day rate by the hours worked per day. This calculator estimates hours per day from weekly hours divided by 5 working days.
If your real day is longer than standard hours, the hourly equivalent falls. This is useful when comparing salaried jobs, contracting, overtime and freelance work.
Need a detailed hourly breakdown?
Use the salary-to-hourly calculator to compare annual salary, weekly hours and weeks worked.
Day rate before and after tax
Day rate calculations are usually gross. Your real take-home income depends on tax, National Insurance, pension, expenses, employment status and company structure.
If you are comparing a salary with a day rate, also compare the estimated net pay, benefits and risk. A contractor day rate may need to be higher than an employee day equivalent to compensate for unpaid time and missing benefits.
Check employee take-home pay
If you are comparing against a PAYE salary, estimate net monthly pay after tax and deductions.
Related day rate glossary terms
These terms help explain salary, day-rate and contractor comparisons.
Day rate FAQs
What is a good day rate compared with salary?
It depends on paid days, unpaid gaps, tax, pension, benefits and risk. A simple salary divided by 260 days is only a starting point.
Should I use 260 working days?
Use 260 for a simple full-time employee comparison. Use fewer days for contractor or freelance work where holidays, sickness or contract gaps are unpaid.
Does this calculate contractor take-home pay?
No. It estimates gross day-rate and annual equivalents. Contractor take-home pay depends on tax structure, IR35 status, expenses and other factors.
Can I compare day rate to hourly rate?
Yes. The calculator estimates an hourly equivalent using the weekly hours entered. For a more detailed hourly comparison, use the salary-to-hourly calculator.