Freelancer Day Rate
Calculator 2025/26

Start with your target net income, work backwards through tax and NI to get the gross you need, add business costs, then divide by your realistic billable days. This calculator does all of that automatically using 2025/26 UK tax rates.

Starting from 260 working days, subtract 28 days holiday and 8 bank holidays, leaving 224 days. A typical 20% downtime allowance for non-billable work, pitching and business development gives around 179 billable days. This varies significantly by sector and how in-demand you are.

If your taxable turnover exceeds £90,000 in any rolling 12-month period you must register for VAT and charge it on top of your rate. VAT is not your money — you collect it and pass it to HMRC quarterly. Your day rate should be quoted exclusive of VAT and you add 20% on top when invoicing VAT-registered clients.

Day rates vary hugely by specialism. Senior developers typically command £400–700/day, UX designers £250–500/day, management consultants £500–1,000/day, copywriters £200–400/day. Your rate should reflect your experience, niche, track record and what the market will bear in your sector.

Limited companies are more tax efficient above roughly £30,000–35,000 profit per year because you can pay yourself a mix of salary and dividends. However they carry more admin and cost. Sole trader is simpler for lower earners. Always get advice from an accountant for your specific situation.