Day rate to annual income calculator
Enter your day rate, how many days a week you work and how many weeks a year you're actually working. You get weekly, monthly and annual income, and the day rate you'd need to hit a target. Everything runs in your browser.
How it's worked out
Yearly income is your day rate × days per week × weeks worked. The default of 46 weeks allows roughly six weeks a year for holidays, bank holidays and gaps between contracts, because self-employed people don't get paid holiday. Use your own figure: someone on a long contract might use 48, and someone who finds work in bursts might use 40.
The monthly figure is simply the yearly figure divided by 12, which is how most people budget even though invoices arrive weekly or monthly. The day rate needed line works backwards: your target ÷ (days per week × weeks per year).
Examples at 5 days a week
| Day rate | 46 weeks | 48 weeks | Per month (46 wks) |
|---|---|---|---|
| £150 | £34,500 | £36,000 | £2,875 |
| £180 | £41,400 | £43,200 | £3,450 |
| £200 | £46,000 | £48,000 | £3,833 |
| £250 | £57,500 | £60,000 | £4,792 |
| £300 | £69,000 | £72,000 | £5,750 |
What about CIS?
If you work under the Construction Industry Scheme, your contractor deducts 20% or 30% of your labour before paying you, so your cash flow is lower than your invoiced income. That's not a final cost: the deductions count towards your Income Tax and National Insurance, and you claim back any excess through Self Assessment. The CIS lines above assume all of your income is labour. Use the CIS deduction calculator for a single invoice with materials and VAT.
Overtime and weekends
This calculator uses your standard day rate. If you regularly work overtime or weekends at enhanced rates, work those out with the day rate calculator and add them on, or see our guide to overtime rates on invoices.
Turnover isn't profit
Before treating the yearly figure as what you'll live on, take off your costs (tools, vehicle, insurance, phone, accountant), then Income Tax and National Insurance. An accountant can tell you what's left. Putting money aside for your tax bill each week is a habit worth building early.
Frequently asked questions
How do I turn a day rate into an annual income?
Multiply your day rate by the days you work each week and the weeks you work each year. For example, £200 × 5 days × 46 weeks = £46,000 a year before tax and costs.
How many weeks a year should I count as working?
Many self-employed contractors use 46 weeks, allowing about six weeks for holidays, bank holidays and gaps between contracts. Use a figure that matches your own pattern of work.
How do I work out the day rate I need?
Divide your target yearly income by the number of days you expect to work in a year. For £45,000 at 5 days a week for 46 weeks, that's £45,000 ÷ 230 = about £195.65 a day.
Is this my take-home pay?
No. It's turnover before business costs, Income Tax and National Insurance. The calculator shows an optional costs percentage and the cash effect of CIS, but it doesn't calculate tax.
Does CIS reduce my annual income?
CIS reduces the cash you receive from each invoice, but the deductions are advance payments towards your tax and National Insurance. You claim back any overpayment through Self Assessment.
Is this calculator tax advice?
No. It's a simple guide using the numbers you enter. Speak to an accountant for advice on your own tax position.
Sources
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.