Dreaming of swapping your permanent role for the freedom and financial upside of contracting? Our Permanent to Contracting Rate Calculator shows you exactly what you need to charge. By factoring in UK tax bands, National Insurance, IR35 status and your personal tax code, this tool instantly converts your gross salary into the hourly and daily rates required to maintain your current take‑home pay.
Making the leap to contracting often means commanding higher rates in recognition of your specialist skills and flexibility. Yet calculating the precise rate to cover tax, pension, holiday pay and employer NI can be a headache. This calculator does the heavy lifting for you: enter your gross annual salary, choose your tax code and the relevant tax year, then click Calculate.
Permanent to Contracting Rate Calculator
Find the daily/hourly rate you need to charge to match your current salary.
Required Contracting Rates
| Daily Rate (£) | |
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| Hourly Rate (£) |
This estimate uses the latest 2025/26 UK tax rules and assumes standard deductions. For a bespoke calculation that includes pension contributions, expense allowances or advanced tax planning, we recommend consulting a qualified accountant.