United Kingdom · Updated for 2026/27
Day rate calculator 2026/27
To take home as much as a £60,000 salary (£45,357 a year after tax), you need about £268 a day outside IR35, or £312 a day inside IR35, over 220 working days a year.
Type a salary to see the day rate that matches it, and a day rate to see the salary it is worth.
£60,000 salary · 220 working days · England, Wales or Northern Ireland
£268 a day outside IR35
Inside IR35: £312 a day. The same take-home as the salary: £45,357.40 a year.
| Day rate | A year | |
|---|---|---|
| Outside IR35 (your company) | £268.11 | £58,984.95 |
| Inside IR35 (umbrella) | £311.59 | £68,550.00 |
| Salary ÷ days (the rough rule) | £272.73 | £60,000.00 |
And the other way: £400 a day
£400 a day for 220 days leaves the same take-home as a salary of £84,458 outside IR35, or £76,840 inside.
A contractor gets no holiday pay, sick pay or employer pension, so the days you bill are the days you are paid for. Pensions and other benefits are not counted.
Why isn’t the day rate just the salary divided by the days?
Because a contractor is taxed differently. Outside IR35, your company pays Corporation Tax and you take dividends, which are taxed less than salary, so you need a little less than salary ÷ days. Inside IR35, an umbrella company takes employer National Insurance and often the Apprenticeship Levy out of the rate before your own tax, so you need more. The calculator tries rate after rate until the take-home after every tax matches the salary’s take-home.
Going the other way, £400 a day for 220 days leaves the same take-home as a salary of £84,458 outside IR35, or £76,840 inside.
How many days should I count?
A year has 260 weekdays. An employee gets at least 28 days of paid holiday a year; a contractor is paid only for the days they work, so take your holidays off, then sickness, training and the gaps between contracts. 220 days is a common planning figure, but use your own: fewer days need a higher rate for the same take-home.
What does a permanent job give you that a day rate doesn’t?
Paid holiday and bank holidays, sick pay, an employer pension, notice and redundancy pay, and often other benefits. The day rates here match take-home pay only. Add the value of anything you would give up to the salary before you compare, or aim above the rate shown. To see a contract in full, try the IR35 calculator or the contractor calculator.
What else can I work out?
- IR35 calculator Inside an umbrella or outside through your own company: your take-home on the same day rate.
- Contractor calculator Your limited company in full: Corporation Tax, salary, dividends and profit kept.
- Hourly wage calculator An hourly rate to a yearly salary and take-home pay, and back again.
- Salary calculator Take-home pay on any salary, with tax codes, Scotland, pensions and student loans.
Every UK tool on one page: salary and tax tools. How the rules work: UK pay and tax guides.
Questions about day rates
What day rate matches a £50,000 salary?
About £231 a day outside IR35 and £259 a day inside, for 220 days, before you allow for holiday pay, sick pay or a pension.
What salary is £400 a day worth?
For 220 days a year, the same take-home as a salary of £84,458 outside IR35, or £76,840 inside.
Why is the day rate higher inside IR35?
Inside IR35 an umbrella company employs you, and pays employer National Insurance (15%) and often the Apprenticeship Levy out of your rate before your own tax. Outside, your company pays Corporation Tax and you take dividends, which are taxed less.
How many days a year does a contractor work?
You choose. A year has 260 weekdays. Take off the 28 days of holiday an employee gets, then sick days, training and gaps between contracts, and 220 is a common planning figure.
Does the day rate include holiday pay or a pension?
No. The calculator matches take-home pay only. If your permanent job gives you an employer pension or other benefits, add their value to the salary before you compare.