UK freelance pricing
UK freelance day rate calculator
Work out the day rate you need from your annual income goal, billable days, tax buffer and business costs. Built for UK freelancers and consultants.
Work out the day rate you need from your annual income goal, billable days, tax buffer and business costs. Built for UK freelancers and consultants.
Target income: £55,000. Expenses: £6,000. Billable days: 180. Required day rate: about £339 before tax planning.
A useful first pass is: target personal income plus business expenses plus tax buffer, divided by realistic billable days. The mistake most new freelancers make is dividing by every working day in the year. You are unlikely to bill 230 days after holidays, admin, proposals, bookkeeping, professional development, and gaps between projects. Many independent consultants plan around 160 to 190 billable days, then adjust once they have real data.
If your target income is £55,000, annual costs are £6,000, and you expect 180 billable days, your pre-tax commercial floor is roughly £339 per day. That is not automatically the right quote. It is the number that tells you when a project is too cheap to sustain.
Include software, equipment, insurance, accountancy, pension contributions, training, travel, professional memberships, payment fees, and a buffer for unpaid sales time. If you use subcontractors or paid advertising, include those too. Small monthly costs look harmless until they are annualised. A £79 subscription is nearly £950 per year, which can move your required day rate by several pounds on its own.
The homepage calculator lets you change income goals, expenses, working days and billable time. If you are taking contractor work, also compare the result with IR35Guide.co.uk so tax status does not surprise you. For clients who buy smaller blocks of time, compare this with the hourly rate calculator. For contract roles, use the contractor day rate calculator.
Main rate calculatorDay rate vs hourly rateIR35 and freelance rates
Is the calculated rate my quote? Not always. Treat it as your minimum sustainable rate, then price based on scope, risk, urgency, and client value.
Should I discount for long bookings? Only if the booking genuinely reduces sales risk and admin. A long project can still be expensive if it blocks better work.
How often should I review my day rate? Review it every quarter while demand is changing, and every time your costs, tax position, or utilisation changes materially.