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What should you charge a day?

Charging what everyone else charges is a guess. Put in the take-home pay you want, your real costs and the days you actually get paid for, and see the day rate and hourly rate that gets you there after tax.

Free tool

Work out your rate

What you want to earn
Business costs a year

The figures shown are placeholders. Put your own in.

Your time

The day rate you need

£230

a day, or £28.71 an hour, before VAT.

Paid days a year
203
Turnover you need
£46,627
Profit before tax
£38,827
Income tax and NI
£6,827

Where your turnover goes

  • Your take-home pay£32,000
  • Business costs£7,800
  • Income tax£5,251
  • Class 4 National Insurance£1,575

Add what you charge now to see the gap.

Putting your day rate up by £20 is worth £4,060 a year. Uses 2026/27 income tax and Class 4 NI rates for England, Wales and Northern Ireland (income tax, NI). Scottish income tax bands are different, so Scottish figures will be out. General information, not tax advice - check with an accountant.

How it works

How the rate is worked out

  1. Paid days

    (52 − weeks off) × (days you work − unpaid admin days), minus bank holidays and sick days. Quoting, travel and paperwork are real work, but nobody pays you a day rate for them.

  2. Profit before tax

    We find the profit that leaves your take-home figure after 2026/27 income tax and Class 4 National Insurance, including the personal allowance taper over £100,000.

  3. Turnover you need

    Profit before tax plus your business costs for the year. This is what your customers have to pay you in total.

  4. Day and hourly rate

    Turnover ÷ paid days gives the day rate; ÷ paid hours in a day gives the hourly rate. Both are before VAT.

  5. VAT check

    If the turnover you need is over the £90,000 threshold, you would have to register for VAT, and VAT-registered prices to most customers are 20% higher.

General information, not tax advice. Rates are for England, Wales and Northern Ireland; Scottish income tax bands differ. Pension contributions, student loans and other income change the answer - check with an accountant. Sources: gov.uk income tax rates and self-employed National Insurance rates.

Questions

Common questions

How do I work out my day rate if I am self-employed?
Start with the take-home pay you want, add your income tax, National Insurance and business costs to get the turnover you need, then divide by the days you are actually paid for in a year. The calculator above does all of that, including the tax, using the current rest-of-UK rates.
How many days a year does a self-employed person actually get paid for?
Far fewer than most people assume. Take four weeks of holiday, eight bank holidays, a handful of sick or bad-weather days and half a day a week for quoting and admin, and a five-day week gives around 200 paid days, not 260. Your own figures may be higher or lower.
Should my hourly rate be my day rate divided by eight?
Only if you are paid for eight hours a day. Many people charge a higher hourly rate for short jobs, because travel and setting up take the same time whatever the job length. A minimum charge or call-out fee is a common way to cover that.
Does this include VAT?
No. The rates are before VAT. If your turnover goes over the VAT registration threshold you must register, and then most customers pay 20% on top. The calculator warns you when the turnover you need is over the threshold.
Does it work for Scotland?
Partly. National Insurance is the same across the UK, but Scotland has its own income tax bands, so the tax figure here will be out for Scottish taxpayers. Use it as a guide and check the Scottish rates on gov.uk or with your accountant.
What costs should I include?
Everything you pay to run the business that an employer would otherwise pay: your vehicle, tools, insurance, phone, software, accountant, marketing and website, training and workwear. Leaving costs out is the most common reason a day rate looks fine on paper but does not pay.

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