What salary equals a given day rate, roughly?

It depends on your contracting route and billable days, because inside-IR35, umbrella and outside-IR35 income are taxed very differently under 2026/27 rules. Rather than a single lookup figure, this calculator computes your actual net income from the day rate you enter and finds the permanent salary that would produce a similar net income once pension and holiday pay are added back.

How do I convert a day rate to an annual salary equivalent?

First convert the day rate to annual fee income using your billable days, then work out net income under your actual contracting route (umbrella, inside or outside IR35). The equivalent permanent salary is the gross figure that would produce a similar net income once you add back the employer pension contribution and paid holiday a permanent role includes but a day rate doesn't.

Does the comparison account for the tax differences between contracting and permanent income?

Yes — it applies the 2026/27 income tax bands and National Insurance rates to your contract income under whichever route you select, and standard PAYE income tax and employee National Insurance to the equivalent permanent salary, so the comparison is net income to net income, not just gross figures.

I'm outside IR35 through a limited company — does the conversion still work?

Yes. The calculator works out your net income after corporation tax and the 2026/27 dividend rates (10.75%/35.75%/39.35% after the £500 allowance) if you select the outside-IR35 route, then finds the permanent salary equivalent from there.

Day Rate to Salary Calculator – Contract Rate to Permanent Equivalent

What permanent salary matches your day rate?

Going the other way — from a contract day rate to an equivalent permanent salary — needs the same care in reverse. A permanent role typically adds back an employer pension contribution and paid holiday that a day rate doesn't include, so simply multiplying a day rate by working days a year overstates what you'd need to match your current net income.

How to use this calculator

Enter your day rate and the route you currently work under — umbrella, inside IR35 or outside IR35 through a limited company
The calculator works out your current net income under 2026/27 tax rules for that route
It then suggests the permanent gross salary that would produce a similar net income, once a typical employer pension contribution and the value of paid holiday are added back
Compare the two net incomes side by side, rather than just the headline salary and day-rate figures

Day Rate to Salary Calculator