Thinking of going freelance, or already contracting? Switch between the day rate you'd need to match a salary, and the salary a day rate is really worth — both allow for the employer pension, unpaid holiday and benefits a salary quietly includes. 2026/27 rates.
Billable days = working days left after holiday, bank holidays and gaps between contracts (around 220 of the 260 weekdays).
Usually more than you might think. You have to replace your employer pension yourself and you only bill part of the year, so to match a salary you typically need a higher annual profit, then divide it by your billable days. The calculator works out both the profit and the day rate for your figures.
Because a salary quietly includes things a sole trader must self-fund: an employer pension contribution, paid holiday, and sick or maternity pay. Replacing those, and billing fewer days than the 260 weekdays in a year, pushes the profit you need above your old salary.
Yes, a little: Class 4 National Insurance is 6% where employee Class 1 is 8%, and there is no Class 2 above £7,105 of profit. But that small saving is usually dwarfed by the benefits you give up, which is why the headline National Insurance gap is misleading on its own.
These results are estimates for general information only and are not financial advice. Check every figure yourself and seek appropriate advice from a qualified professional before making any decision. Read the full disclaimer.