Day rate calculator: salary to contractor day rate
A contractor day rate has to cover what an employer would otherwise pay: holidays, pension, insurance and the days you cannot bill. Matching a 60,000 salary with benefits worth 20% across 220 billable days needs a day rate of about 327 (41 an hour on an 8-hour day). The common UK shortcut of salary ÷ 200 gives 300; this calculator shows where that rule holds.
Salary to day rate (20% benefits, 220 days)
- 40,000 salary ≈ 218 a day
- 60,000 salary ≈ 327 a day
- 80,000 salary ≈ 436 a day
- 100,000 salary ≈ 545 a day
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Frequently asked questions
How do I convert a salary to a day rate?
Multiply the salary by 1 + the value of benefits (often 15-30%), add business overheads, and divide by the days you expect to bill (typically 200-230 a year).
What is the salary ÷ 200 rule?
A UK rule of thumb that assumes roughly 200 billable days after holidays and gaps; it does not price in pension or overheads, so it can undershoot.
Does this include tax or IR35?
No. It compares gross figures. Inside-IR35 contracts in the UK are taxed like employment, so you may need a higher rate; use the self-employed tax calculator for take-home.
How many billable days are typical?
Around 220-230 in the US, 210-225 in the UK and 200-215 in much of the EU once public holidays and leave are removed.