Day rate comparison guide
A day rate is not the same thing as a salary
The calculator annualises a day rate using the working days and weeks you choose. That is useful for comparing headline gross income, but it does not value paid holiday, employer pension, sick pay, bonus, insurance, training or gaps between contracts.
Use realistic working weeks
For example, £400 per day × 5 days × 46 weeks gives £92,000 of gross annualised billings. Using 52 weeks would assume every working week is billable. A contractor who takes unpaid leave or has gaps between assignments may need a lower working-week assumption.
Tax treatment depends on how you work
Umbrella employment, employment through an agency, a personal service company and genuinely self-employed work can have different tax and cost structures. Off-payroll working rules can also matter. This tool deliberately avoids promising a contractor take-home figure without knowing the legal and payroll arrangement.
Compare the whole package
When weighing a permanent offer against a day rate, add the value of employer pension contributions and other benefits, then consider unpaid time and commercial risk. The gross annualised result is a starting point, not a break-even answer.