Day Rate to Salary Calculator 2026/27
Updated for the 2026/27tax year · Last updated
Enter your day rate and estimated billable days per year to see your annual gross income and take-home after income tax and NI. Useful for comparing contractor income to a permanent role.
Annual take-home
£67,978
Monthly take-home
£5,665
| Gross (day rate × days) | £99,000 |
| Income tax | − £27,031 |
| National Insurance | − £3,991 |
| Take-home | £67,978 |
Equivalent permanent salary: £99,000/year gross. A permanent role typically includes benefits (employer NI, pension, holiday) worth 20–30% on top of salary.
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How this calculator works
Annual gross = day rate × billable days. Income tax and employee NI are then applied at 2026/27 rates to give take-home pay. This assumes the income is taxed as employment income — if you operate through a limited company and pay dividends, use the IR35 calculator for a more accurate picture.
Frequently asked questions
The UK tax year has roughly 260 working days. Allow 20–25 days for holidays and 5–10 for public holidays, sick days, and bench time between contracts. Most contractors use 200–230 billable days as a realistic estimate.
Not directly. A permanent employee receives employer NI (13.8%), pension contributions (typically 3–5%), holiday pay, sick pay, and other benefits on top of their salary. A rough 'loaded' factor of 1.3× is often used — a £50,000 salary 'costs' the employer around £65,000. A day rate should compensate for the lack of these benefits.
At higher day rates, a limited company structure typically yields more take-home pay — especially outside IR35, where you can mix salary and dividends. Use the Ltd vs Sole Trader calculator for a direct comparison at your income level.
A rough guide: multiply the target gross salary by 1.3 (to account for employer costs) then divide by your billable days. For example, to match a £60,000 salary at 220 days: £60,000 × 1.3 ÷ 220 ≈ £354/day. You'd need more to also cover bench time and holidays.