2026/27 Tax YearCareer Change
Permanent to Contracting Calculator
Calculate the day rate you need to match or exceed your permanent salary when moving to contracting.
Current Permanent Role
Recommended Day Rates
To maintain or improve your income as a contractor
Minimum to Match
£313
Same take-home
With 15% Buffer
£360
Minimum recommended
Ideal Rate (+25%)
£392
Covers all benefits
Your Permanent Package
Gross Salary
£60,000
Take-Home
£42,552
Total Package
£68,915
Daily Equivalent
£273
Why the Uplift?
As a contractor, you need to charge more than your equivalent daily rate because you lose:
- Paid holidays - 25 days = 11.4% of working days
- Sick pay - No pay when you're ill
- Employer pension - Typically 3-5% of salary
- Job security - Contracts can end with short notice
- Training & development - Self-funded
- Equipment - Laptop, software, etc.
- Accountancy fees - Typically £1,000-2,000/year
Recommended uplift: 25% above equivalent daily rate