Day rate to salary calculator
Multiplying a day rate by 260 working days flatters every contract. Contractors are unpaid for holiday, bank holidays, sick days and the gaps between contracts, 44-46 chargeable weeks is the honest year, and this calculator uses it.
44-46 is realistic for contractors
£400.00/day × 5 days × 46 weeks
£92,000 a year
The naive ×52 figure of £104,000 overstates it by £12,000, contractors are not paid for holiday, sick days or gaps between contracts.
Why a day rate must beat the salaried equivalent
A £92,000 contract is not equivalent to a £92,000 salary. The employee also gets employer pension contributions (3%+ of pay), paid holiday and sick leave, notice periods, and, inside IR35 or through an umbrella, the employer's National Insurance comes out of your rate rather than on top of it. The usual rule of thumb is that a fair inside-IR35 day rate is roughly the target salary ÷ 200 working days × 1.25 or more. Run the umbrella deduction chain on the umbrella company calculator, then take the resulting gross to the main calculator for your net.
Quick equivalences at 46 weeks
At 5 days a week and 46 weeks: £300/day grosses £69,000, £400/day £92,000, £500/day £115,000, £600/day £138,000. Remember these are turnover, not salary, inside IR35 or through an umbrella, employer National Insurance and fees come out before your own tax does.
Going the other way
To match a salary, divide it by around 200 realistic working days and add at least 25% for the lost pension, holiday and security, a £60,000 job is roughly a £375-£400/day inside-IR35 contract, not £230. The umbrella calculator runs the full deduction chain from an assignment rate.
Checked 2026-08-28. Method on the about page.