How do I calculate a day rate from a salary?

Add your costs to your salary, divide by the hours clients will pay for in a year, and multiply by the paid hours in a day, usually 8.

Why not divide my salary by 260 working days?

Because contractors are not paid for holidays, sick days or gaps between contracts. Working from paid days gives a rate that actually replaces the salary.

How many days a year does a contractor bill?

Fewer than 260: with 25 paid hours a week for 44 weeks, it is about 137 full days, but use your own estimate in the calculator.

No. Everything is worked out in your browser and nothing is sent anywhere.

Free tool

Day rate calculator for freelancers and contractors

To work out a day rate, add the costs your employer covered to your salary, divide by the hours clients will pay for in a year to get an hourly rate, then multiply by the paid hours in a day, usually 8. On a $90,000 salary with 30% costs, 25 paid hours a week and 44 weeks, that is about $851 a day.

Your yearly salary$90 k

In thousands of US dollars, before tax

Hours clients pay you for each week25 hrs

Not hours worked. Finding clients, admin and learning are unpaid.

Weeks you work in a year44 wks

Leave room for holidays, illness and months with less work

Costs your employer paid for you30 %

Laptop, software, internet, insurance, tax savings, platform fees

To match your salary, charge at least

$107 an hour

That is about $851 for a day of 8 paid hours.

Salary plus costs your employer paid: $117,000
Hours clients pay for in a year: 1,100

This is your minimum, not what the market pays. Below this rate, freelancing pays you less than your job does.

Why a day rate is more than salary divided by 260

A year has about 260 working days, so salary divided by 260 looks like a day rate. It is not, because a contractor is not paid for holidays, sick days, the gaps between contracts, or the days spent finding the next one. The calculator works from paid weeks and paid hours instead, which is what a client actually pays for.

Quoting a day rate

Quote the day rate with what a day means: for example, 8 hours of work, with travel or extra hours billed separately. For longer contracts, some contractors offer a slightly lower day rate in return for a guaranteed number of days. Put the agreed rate and the number of days in your contract and on every invoice, so they match.

Switch the calculator to rupees if your salary is a CTC in India. The day rate appears under the hourly figure when you work in dollars; in rupees, multiply the hourly rate by 8.

Questions people ask

How do I calculate a day rate from a salary?: Add your costs to your salary, divide by the hours clients will pay for in a year, and multiply by the paid hours in a day, usually 8.
Why not divide my salary by 260 working days?: Because contractors are not paid for holidays, sick days or gaps between contracts. Working from paid days gives a rate that actually replaces the salary.
How many days a year does a contractor bill?: Fewer than 260: with 25 paid hours a week for 44 weeks, it is about 137 full days, but use your own estimate in the calculator.
Is my data saved?: No. Everything is worked out in your browser and nothing is sent anywhere.

Last checked on 4 October 2026.