Skilful DesignersThe formula
Day rate = (salary × (1 + pension %) + benefits + business costs) ÷ billable days
The salary side adds up everything your job gives you in money terms. The freelance side divides it by the only days that earn anything. Paid holiday is already accounted for, because those days are missing from your billable days, not added to the cost.
What this does not price in is risk. A job pays you during quiet months; freelancing does not. Many freelancers add 10 to 20% on top of the matching rate to build a cash buffer. To start from the income you want rather than a salary, use the freelance day rate calculator.
Worked examples
- £40,000 salary, 3% pension, £3,000 costs, 180 days: £41,200 + £3,000 = £44,200 ÷ 180 = £246 a day.
- £55,000 salary, 5% pension, £1,500 benefits, £4,000 costs, 170 days: £57,750 + £1,500 + £4,000 = £63,250 ÷ 170 = £372 a day.
- £30,000 salary, 3% pension, £2,500 costs, 150 days: £30,900 + £2,500 = £33,400 ÷ 150 = £223 a day.
Day rates for common salaries
With a 3% employer pension, £3,000 of business costs and 180 billable days:
| Salary | Equivalent day rate | Hourly (7.5 h) |
|---|---|---|
| £25,000 | £160 | £21 |
| £30,000 | £188 | £25 |
| £35,000 | £217 | £29 |
| £40,000 | £246 | £33 |
| £50,000 | £303 | £40 |
| £60,000 | £360 | £48 |
| £75,000 | £446 | £59 |
Frequently asked questions
What day rate equals a £40,000 salary?
With a 3% employer pension, £3,000 of business costs and 180 billable days, you need about £246 a day to match a £40,000 salary. Billing fewer days or having higher costs pushes the figure up.
Is salary divided by 200 a good rule of thumb?
It is a rough shortcut that often comes out close, because it assumes around 200 billable days and ignores costs and benefits. The calculator here uses your own billable days, pension and costs, which is more reliable, especially in your first year when you may bill far fewer days.
Why is the freelance rate so much higher than my daily salary?
As an employee you are paid for holidays, bank holidays, sick days and the hours spent in meetings or between projects, and your employer pays for your laptop, software and pension. As a freelancer you only get paid for the days you bill, and you pay for everything else yourself.
Should I include employer National Insurance?
Not as part of your pay. Employer National Insurance is a cost to your employer, not money you receive. Self-employed people pay Class 4 National Insurance at a lower rate than employees, which works in your favour.
Sources
The figures and rules in this tool follow these official sources, checked on 3 November 2026:
Cite this tool
Skilful Designers. “Salary to Day Rate Calculator.” https://skillfuldesigners.co.uk/salary-to-day-rate-calculator/ (updated 3 November 2026). Built by Sumair Roudani.