Free calculator
Day Rate Calculator
Work out the day rate that pays your take-home goal once taxes, business expenses and the days nobody pays for (quoting, travel, admin, gaps between jobs) are counted. Test the day rate you charge now. Free, no sign-up.
- Revenue you need$0
- At the day rate you are checking, you keep$0
- Per day you actually work$0
The day rate you need if you bill more of your time
- 50% of your time billed$0
- 60% of your time billed$0
- 70% of your time billed$0
- 80% of your time billed$0
How it works
A day rate has to pay for every day you work, not only the days a client books. Quotes, travel, buying supplies, admin and the gaps between jobs all take time, and expenses run whether a day is billed or not.
This calculator grosses your take-home up for the tax share you set aside, adds a year of business expenses, and spreads that revenue over the time clients actually pay for: your weeks times your days times the share of your time that is billed. Revenue divided by billed days is your minimum day rate; divided by billed hours it is the hourly equivalent, and the rate card rounds that hour up to the next $5.
To test a day rate, it multiplies the rate by your billed days, takes out expenses and your tax set-aside on any profit, and divides what is left by every day you work. It is the Hourly Rate Quick Calculator's maths with your week entered in days.
A worked example
A contractor who wants $65,000 a year take-home, sets aside 25% for tax and spends $14,000 a year on the truck, insurance and tools needs $100,667 of revenue. Working 48 weeks of five 10-hour days is 240 days, and with 55% of that time billed, clients pay for 132 days. The minimum day rate is $762.63, or $76.26 an hour (rate card $80). Charging $450 a day brings in $59,400 and leaves $34,050 after expenses and tax: $141.88 for every day worked, $30,950 short of the goal. Billing 80% of the time instead of 55% would bring the minimum day rate down to $524.31.
Keep it, change it, quote with it
The Hourly Rate Quick Calculator is the same maths as a one-tab Excel and Google Sheets workbook, with a quick job quote, the billable-share table, a rate card and a Start Here guide. $2.99, instant download.
Questions
How do I calculate my day rate?
Add the tax you set aside to the take-home you want, add a year of business expenses, then divide by the days clients actually pay for. With the example numbers that is $100,667 over 132 billed days, or $762.63 a day.
Why is my day rate higher than my old daily pay?
An employer paid for the equipment, the insurance and the days spent on admin, travel and waiting for work. On your own you pay for all of that from your rate, and only the billed share of your days earns it.
What share of my time is billed?
Track a few weeks: divide the days or hours a client paid for by all the time you worked, quoting and travel included. The example's 55% is a starting point, not a benchmark. The table under the results shows the day rate at 50%, 60%, 70% and 80% billed.
Should I set a day rate or an hourly rate?
Both come from the same revenue. The calculator shows the hourly equivalent next to the day rate, so you can quote either way and get the same year.
What tax set-aside rate should I use?
Ask your tax preparer. A set-aside rate is a savings habit you choose, not a tax calculation, and this calculator does not tell you which rate to use.
Is this tax or financial advice?
No. It is a planning estimate based on the numbers you enter.