Freelance rate calculator UK.
Your day rate is everything you need to bring in over a year (your income, business costs, pension and a profit margin) divided by the days you can actually bill. Enter your own figures below to see your day rate, hourly rate and billable days, using 2026/27 National Insurance rates.
Your rate
- Day rate
- £310
- Hourly rate
- £42
- Billable days a year
- 212
- 260 working days less 48 days off
How it adds up, per year
- Your income
- £40,000
- Employer National Insurance (15% above £5,000)
- £5,250
- Pension (5%)
- £2,000
- Business costs
- £3,600
- Insurance
- £500
- Accountancy
- £1,200
- Total costs
- £52,550
- Profit margin (20%)
- £13,138
- Money you need to bring in
- £65,688
That's £5,474 a month.
Uses 2026/27 rates. Your income is treated as a salary from your company, so the rate includes employer National Insurance. It doesn't include corporation tax, income tax, dividends or the Employment Allowance.
How to work out your freelance rate
Pricing your work properly is the foundation of a freelance business that lasts. The calculator follows three steps.
- Start with your income. Enter what you want to pay yourself in a year before income tax. A good starting point is what you'd earn in a similar permanent job.
- Add your true costs. Include business costs, insurance, accountancy and your pension. If you work through a limited company, the calculator adds the employer National Insurance your company pays on your salary. Then take off the days you can't bill for: holidays, sickness, training and admin.
- Set your profit margin. Add a margin on top of your costs for growth, surprises and quiet spells. The calculator turns the total into a day rate and an hourly rate.
Why freelance pricing matters
Undercharging is an easy mistake to make when you start freelancing. It's tempting to take your old salary and divide it by 260 working days, but that ignores what it costs to run a business.
As a freelancer, you pay for your own holidays, sick days, training, insurance, equipment, accountancy and pension. You also lose time to admin, marketing and finding the next client, and nobody pays you for those days. Your rate has to cover all of it from the days you do bill.
Getting your rate right from the start saves you from working longer hours for less than you earned as an employee.
Costs freelancers often forget
- Employer National Insurance, if you pay yourself a salary through a limited company (15% above £5,000 in 2026/27)
- Your whole pension, with no employer contribution
- Professional indemnity and other insurance
- Accountancy and bookkeeping
- Software subscriptions and tools
- Admin and marketing time you can't bill for
- Holiday and sick pay, which you now fund yourself
- Replacing and upgrading equipment
Limited company or sole trader
The calculator works slightly differently depending on how you're set up.
Limited company. Your income is treated as a salary your company pays you, so the company also pays employer National Insurance on it. That makes the result an employee-equivalent cost: what it would cost a business to employ you at that salary. Many directors pay themselves a small salary and take the rest as dividends, which changes the tax, so treat this as a starting point and ask your accountant about the best mix for you. The calculator doesn't include corporation tax, income tax, dividend tax or the Employment Allowance.
Sole trader. There's no employer National Insurance. Your income is your profit, and you pay Class 4 National Insurance on it. The calculator shows your Class 4 figure for information, but doesn't add it to your rate, because it comes out of your income in the same way National Insurance comes out of a salary. Income tax isn't included either.
| 2026/27 National Insurance | Rate |
|---|---|
| Employer (limited company salary) | 15% on salary above £5,000 a year |
| Class 4 (sole trader profits) | 6% on profits from £12,570 to £50,270 |
| Class 4 (sole trader profits) | 2% on profits above £50,270 |
These rates come from GOV.UK's rates and thresholds for 2026 to 2027. I'll update the calculator when they change.
Ways to price your work
Value-based pricing
Instead of charging for your time, charge for the value of what you deliver. A piece of work that brings a client more customers can be worth far more to them than the hours it took. It takes confidence and a good understanding of the client's business, but it's worth considering once you know your minimum rate.
Day rate or hourly
Day rates give you more predictable income and less admin, and you don't have to justify every hour. Keep hourly rates for small tasks, retainers or clients who need flexibility.
Review your rate regularly
Look at your rate at least once a year. Think about inflation, new skills, more experience and how busy you are. New clients should always pay your current rate.
Know your market
Find out what others in your field charge, through freelance communities, industry surveys and job boards that list contract rates. Then decide where you sit, based on your experience and what you specialise in.
An estimate, not advice
The calculator gives you an estimate from the figures you enter. It isn't financial or tax advice. Tax rates and thresholds change, and your own situation will have details a calculator can't see, so talk to a qualified accountant before you set your rates.
If you're working through a limited company, you might also find my IR35 contract checker useful. And when you're ready for a website that helps win the work, have a look at what I build.
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Questions people ask
How much should I charge as a freelancer in the UK?
Enough to cover the income you want, your business costs, your own pension, any National Insurance your business pays and a margin for quiet months, spread over the days you can really bill. The calculator on this page works that out from your own figures, which is more useful than an average from someone else's industry.
What is a good freelance day rate in the UK?
It depends on your field, your experience and your costs, so I'd be wary of any single figure. Start with the rate you need to cover your costs and pay yourself properly, then look at what others in your field charge and where you sit among them.
Should I charge hourly or daily rates?
Day rates give you steadier income and less time tracking every minute. Hourly rates suit small jobs, ad hoc support or clients who need flexibility. Plenty of freelancers offer both, with the hourly rate worked out from the day rate, which is what the calculator does.
What business expenses should I include in my freelance rate?
Everything the business pays for: software and subscriptions, phone and internet, equipment and its replacement, travel, marketing, training, professional indemnity and other insurance, and accountancy. It's easy to underestimate these, so go through a few months of bank statements rather than guessing.
Do I need to account for employer National Insurance as a freelancer?
If you work through a limited company and pay yourself a salary, your company pays employer National Insurance on it. For 2026/27 that's 15% on salary above the secondary threshold of £5,000 a year. If you're a sole trader there's no employer National Insurance; you pay Class 4 National Insurance on your profits instead.
What National Insurance do sole traders pay?
For 2026/27, Class 4 National Insurance is 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. You no longer pay Class 2 as a separate bill: if your profits are £7,105 or more, it's treated as paid. Choose 'Sole trader' in the calculator to see your Class 4 figure.
How do I factor in a pension as a freelancer?
No employer pays into a pension for you, so you fund all of it yourself. Set the percentage of your income you want to put away and the calculator adds it to your costs. A financial adviser can help you decide how much is right for you.
How many billable days can I work in a year?
Start with your working days (five days a week for 52 weeks is 260) and take off holidays, including bank holidays, sick days, training and the days you spend on admin and finding work. With 28 days' holiday, 5 sick days, 5 training days and 10 admin days, that leaves 212. Overestimating billable days is one of the easiest ways to set your rate too low.
Should I include a profit margin in my freelance rate?
Yes. Profit isn't the same as your income. It's the buffer that pays for quiet months, unexpected costs, new equipment and growing the business. Without one, every surprise comes straight out of your own pay. The calculator starts at 20%, but choose what feels right for your work.
Want a second pair of eyes?
The tool gives you a start. If you'd like honest advice on your website, tell me what you're working on. No obligation.