How do I work out what day rate I need to charge?

Start from the net income you want to end up with each year, factor in your realistic billable days (allowing for holiday and gaps between contracts), and work backwards through tax and National Insurance for whichever route you'll be paid under — umbrella, inside IR35 or outside IR35 — since each requires a different day rate to hit the same net income for 2026/27.

What day rate do I need for the equivalent of a £100,000 salary?

It depends heavily on your billable days and which contracting route you use, since inside-IR35, umbrella and outside-IR35 income are taxed very differently. Rather than a single figure, this calculator solves for the actual day rate you'd need under each route to reach a chosen net income target.

Does this calculator account for downtime between contracts?

Yes — you set your expected billable days per year rather than assuming you'll work every working day, so the required day rate reflects realistic utilisation rather than a best-case scenario.

How is this different from a simple freelance day rate calculator?

Most freelance rate calculators work forwards from costs and desired profit margin to a rate. This one works backwards from a specific net income target through actual 2026/27 tax and National Insurance rules for umbrella, inside-IR35 and outside-IR35 routes, so the output is tied to what you'll really take home, not just a costing exercise.

Day Rate Calculator – What Day Rate Should I Charge?

Working backwards from the income you want to the day rate you need

Most day-rate calculators only work in one direction — rate in, take-home out. This one works backwards: tell it the net income you want to end up with, and it solves for the day rate you'd need to charge, under umbrella, inside-IR35 or outside-IR35 routes, adjusted for billable days and downtime.

How the reverse solver works

Enter your target net income, either annually or monthly, and your expected billable days per year (accounting for holiday, gaps between contracts and any downtime)
Choose which route you'd be working under — umbrella, inside IR35 via agency PAYE, or outside IR35 through a limited company — since each is taxed differently for 2026/27
The calculator works backwards through the relevant tax and National Insurance calculation to find the day rate that would produce your target net income under that route
Compare the required rate across all three routes side by side, so you know how status affects the rate you need to ask for

Target Income Day Rate Calculator

Working backwards from the income you want to the day rate you need

How the reverse solver works

Frequently asked questions