UK Freelance Rate Calculator 2025/26

Find out exactly what day rate you need to charge to hit your income goals. Includes UK Income Tax and National Insurance calculations for 2025/26.

£
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Software subscriptions, cloud hosting, equipment, training

You need to charge
£381/day

or £48/hour · 188 billable days/year

Where your money goes
Take home£49,999 (70%)
Corporation Tax£14,005 (20%)
Dividend Tax£4,587 (6%)
Business expenses£3,000 (4%)
Total revenue needed£71,591/year

Assumes £12,570 salary (personal allowance) with remaining profits taken as dividends. Your accountant may recommend a different strategy.

Already have a rate in mind?
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This calculator provides estimates based on UK 2025/26 tax rates.
For personalised advice, consult a qualified accountant.

Frequently asked questions

Start with your target annual take-home income, then work backwards. Add your estimated business expenses, calculate the tax you'll owe (Income Tax and National Insurance for sole traders, or Corporation Tax and Dividend Tax for limited companies), and divide by your realistic number of billable days per year. Most freelancers can bill around 180-220 days after accounting for holidays, sick days, and time spent on admin and marketing.

UK Freelance Day Rates by Profession

What freelancers actually charge. These figures come from YunoJuno's 2025 Freelancer Rates Report, IT Jobs Watch, and the ProCopywriters annual survey. Rates vary by experience, location, and client type.

ProfessionJuniorMid-LevelSenior
Software Developer£350–450£450–550£550–750
Designer£250–350£350–500£500–714
Copywriter£250–350£400–500£500–800
Consultant£400–500£500–650£650–900
Photographer£200–300£300–450£450–700
Marketing Specialist£300–400£400–550£550–750

London rates run 15–25% higher. Niche specialists command premiums. Enterprise clients pay more than startups. Your rate sits somewhere in these ranges based on track record, demand for your skills, and who you sell to.

Should You Charge Hourly, Daily, or Per Project?

Each billing model has trade-offs. The right choice depends on your work style and client relationships.

ModelBest ForAdvantageRisk
HourlyConsulting, ad-hoc support, uncertain scopePaid for every minute workedIncome unpredictable, admin overhead
Day RateEmbedded work, ongoing projects, agency contractsPredictable income, simple to quoteMust fill the day, harder to scale
ProjectWebsites, branding, fixed deliverablesHigher margins when efficientScope creep, estimation errors

Converting rates: Day rate ÷ 8 gives your hourly. Many freelancers use 6–7 billable hours as their true productive day, so divide by that if you want a more honest figure.

The scope creep trap: Project pricing rewards speed but punishes poor scoping. If you quote fixed fees, define deliverables with precision. "Website" means nothing. "Five-page brochure site with contact form and CMS" means something.

Salary vs Freelance: The Real Comparison

A £50k salary and £50k in freelance revenue are different animals. Employees get benefits paid for by their employer. Freelancers must fund everything from their day rate.

Employed SalaryEquivalent Day RateWhat You're Covering
£40,000~£200/dayEmployer NI, basic pension
£50,000~£250/dayHoliday pay, sick leave
£60,000~£300/dayTraining, unbillable time
£80,000~£400/dayEquipment, insurance, software
£100,000~£500/dayBusiness development, gaps between contracts

An employee on £40k costs a company £55–60k when you add employer National Insurance (13.8%), pension contributions (3–5%), equipment, training, and office space. When a company hires you at £400/day, they avoid £15–20k in annual employment costs.

This explains the contractor premium. Freelancers typically charge 2–3× the equivalent hourly employee rate. The maths works out roughly even once you account for everything an employer provides.

What Affects Your Rate

The calculator gives you a floor: the minimum you need to charge to hit your income target. Where you actually land depends on six factors.

Experience and track record
Years matter less than results. A portfolio of successful projects, testimonials, and recognisable client logos lets you command senior rates regardless of time served.
Market demand
Hot skills fetch premiums. AI, cybersecurity, and specialised compliance work currently command 20–30% above generalist rates. Yesterday's hot skill becomes tomorrow's commodity.
Location
London rates run 15–25% higher due to cost of living and corporate demand. Remote work has compressed this gap, but local presence still commands a premium for certain clients.
Specialist vs generalist
Narrow expertise beats broad competence for pricing power. "React developer" earns less than "React developer for fintech trading platforms." The tighter your niche, the less competition you face.
Client type
Enterprise clients pay £600–1,000/day. Startups and SMEs cluster around £250–450. Agencies sit in between. Match your target client to your target rate.
Project complexity
Simple execution commands baseline rates. Strategic work, tight deadlines, or high-stakes projects justify premiums. If failure would cost the client millions, your rate should reflect that.

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