Freelancer Day Rate Calculator
Your day rate sounds great until you subtract days not worked, business expenses and tax. This calculator shows what your rate really earns you after everything.
Enter your day rate, how many days you work a year, and your annual expenses.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: £350/day, 220 days
Important assumptions
- Assumes you are a sole trader paying Self Assessment tax.
- Days worked should be your billable days, not calendar days.
- Expenses must be allowable business expenses.
Frequently asked questions
How many days should I use?
A typical full-time freelancer works 220 billable days a year — 52 weeks minus weekends, holiday, sick days and gaps between contracts. Some use 200 to be conservative.
Is my day rate before or after tax?
Your day rate is turnover before tax. You pay Income Tax and Class 4 National Insurance on your profit (turnover minus expenses), not on your day rate.
Should I use a limited company instead?
A limited company can be more tax-efficient once profits are high, but has extra costs and admin. Use our sole-trader-vs-limited-company guide to compare.
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View calculatorRelated guides
New to the topic? Read a plain-English guide on business & self-employed, with worked examples and tips.
Self-employed tax explained
Income tax and Class 4 NI on your profits, simply explained.
Read the guide BusinessSole trader vs limited company
The pros, cons and tax differences of each trading structure.
Read the guide BusinessHow to become self-employed
Registering with HMRC, tax returns and what you need to do first.
Read the guide BusinessMileage allowances explained
The HMRC mileage rates — 55p per mile for cars and vans in 2026/27, plus motorcycles, bicycles and passenger claims.
Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.