Contract vs Permanent Calculator
Enter your day rate and the permanent salary you're comparing it against. The calculator works out what you'd actually take home from each — after tax, NI, and the costs that come with contracting.
How to use this
- Enter your day rate — what you charge the client per day.
- Set how many billable days you expect to work and how many gap days you'll have between contracts.
- Add your accountancy fees — most contractors pay £800–£2,000/year.
- Tick Inside IR35 if your contract falls inside IR35 (your client or HMRC has determined this).
- Enter the permanent salary you're comparing against.
Contract Details
Permanent Salary (to compare)
Assumes 5% salary sacrifice pension
Accuracy note
Outside IR35 assumes salary = personal allowance, remaining profit paid as dividends. Corporation tax uses marginal relief (19–25%). Dividend tax: 10.75% basic / 35.75% higher / 39.35% additional (gov.uk/tax-on-dividends). Inside IR35: employer NI at 15% above £5,000 secondary threshold (gov.uk employer rates 2026/27) is deducted first; PAYE applies to the remaining deemed salary. Small company clients retain the 5% deduction before employer NI. All figures are estimates — talk to an accountant before making a decision.
Contract (Outside IR35)
£5,048/month
£60,582/year net · 450 × 200 days
Monthly Net Comparison
Equivalent Permanent Salary
£91,000
Gross perm salary that matches your contract take-home
Annual Figures