Find out what to charge as a freelancer or contractor — accounting for tax, holidays, and non-billable time.
Start with your target take-home, gross it up for tax, add expenses, then divide by your billable days. Billable days = working days − holidays − sick/admin days, × your billable utilisation rate. This calculator does all of that automatically.
UK day rates vary hugely by sector: software developers £400–£800/day, digital marketers £250–£500/day, UX designers £350–£650/day, copywriters £200–£450/day, project managers £350–£600/day. Senior and specialised contractors command premium rates.
No — as a freelancer you pay your own tax, NI, pension, and have no holiday or sick pay. Your day rate should typically be 1.5–2× a comparable permanent salary equivalent to break even. Use this calculator to find your personal break-even.
Common deductible expenses: home office costs, equipment, software subscriptions, professional development, travel, accountant fees, professional indemnity insurance, and marketing costs. Keep receipts for everything.
UK self-employed: set aside ~25–30% of invoices to cover income tax and Class 4 NI. US self-employed: set aside ~25–30% for federal/state income tax and 15.3% self-employment tax. Many freelancers run a separate tax savings account.