Turn a day rate into a realistic working year.

It converts one known commercial figure into comparable hourly, daily, weekly, monthly and annual gross amounts. Every result uses the same billable hours, billable days and billable weeks, so the figures describe one consistent working pattern.

The calculation is designed for rate comparison and revenue planning. It does not estimate salary, take-home pay or the market rate for a particular role.

Annual gross revenue equals the day rate multiplied by billable days per week and billable weeks per year. A £500 day rate, five billable days a week and 46 billable weeks produces £115,000 of gross annual revenue: £500 × 5 × 46.

This is invoice capacity, not guaranteed income. Reducing the schedule to 42 billable weeks would produce £105,000 before business costs, tax and personal deductions.

The default of 46 weeks is a planning assumption, not a rule. The appropriate figure depends on expected leave, public holidays, administration, training, business development and gaps between contracts.

Use the number of weeks that can realistically be invoiced. Comparing a cautious schedule with a stronger year is usually more useful than assuming all 52 weeks will be billable.

Divide the annual gross billing target by the expected billable weeks and billable days per week. A £92,000 target across 46 weeks and five days requires a £400 day rate: £92,000 ÷ 46 ÷ 5.

If fewer days are available, the required rate rises. The calculator makes that trade-off visible before a proposal or contract is agreed.

Enter commercial rates and revenue before VAT. VAT collected for HMRC is not contractor revenue, and this calculator does not add VAT or test whether registration is required.

VAT treatment depends on registration status, the supply and the customer. Check the current GOV.UK guidance or obtain professional advice when VAT applies.

Source: GOV.UK VAT registration guidance

No. Results are gross commercial equivalents before Income Tax, Corporation Tax, National Insurance, pension contributions, dividends and other personal deductions. Company structure and employment status can materially change the amount ultimately retained.

The calculator also does not determine employment status or whether the off-payroll working rules apply. Use HMRC's employment-status service for that separate question.

Source: Check Employment Status for Tax on GOV.UK

The calculator multiplies a monthly retainer by 12 to establish annual gross revenue, then divides that amount by the selected billable schedule. A £4,000 monthly retainer is £48,000 a year. If it covers two days a week for 46 weeks, its effective day rate is about £521.74.

The comparison is only useful when the entered days and hours reflect the actual delivery commitment. Availability, response times and work outside scheduled delivery may need to be priced separately.

The optional section subtracts entered annual business costs and a percentage reserve from gross annual revenue. It shows an amount available before tax, not disposable income.

Business costs might include insurance, software, equipment, accountancy and professional subscriptions. The reserve is a planning buffer for uncertainty; it is not a tax calculation or an accounting recommendation.

It can provide an arithmetic baseline, but a quote should also reflect scope, delivery risk, specialist experience, demand, contract length, payment terms and responsibility for rework. The calculator cannot decide the appropriate market price.

Before quoting, check that the billable schedule matches the work promised and that the rate still covers non-billable time and business costs. The result is best used as a transparent starting point for a commercial decision.