Most bad formulas take **salary / 260** and call it done. This page adds the pieces payroll used to hide.
Step 1 — Load the salary
Take $120k base. Employer pays $7,650 FICA match + $7,500 health ⇒ ~$135k loaded (simplified). That is your economic cost baseline—see [employer cost calculator](/employer-cost-calculator) and what your employer actually pays on top for the full loaded-wage picture.
Step 2 — Pick utilization
220 working days × 80% billable = 176 days. Consulting with 5.5 productive hours/day ⇒ 968 hours/year. Loaded $135k / 968h ≈ $139/h before profit.
Step 3 — Add risk margin
Add 12–20% for bench, unpaid invoices, software, PI insurance ⇒ $155–$167/h. Round to $1,200–$1,350/day for an 8h quote. Ground the margin using insurance and benefit costs—especially if you leave employer group cover.
Euro example
€72k German salary ⇒ employer cost ~€86k. 176 days ⇒ €488/day raw. With 15% margin ⇒ €560/day minimum.
Validate net using [DE calculator](/de/).
Cross-check with calculators
Plug your target employee net into any country tool, read the break-even revenue banner, divide by billable days—numbers should align within a few points; if not, your margin assumption is off.
Singapore and Switzerland quick anchors
S$120k employment with employer CPF might load to S$136k+ TC—divide by ~150 billable days ⇒ S$900+ before risk margin. CHF 130k salary with employer social often costs CHF 148k–155k loaded—CHF 950–1,050/day at ~155 billable days before you add LAMal volatility.
Hourly from daily (and vice versa)
If you sell 8h days but only 5.5h are deep work, your effective hourly for pricing is dayRate ÷ 5.5, not ÷ 8—otherwise you donate ~30% of sellable time.
Utilization vs billable days (220 raw working days base)
Multiply your required annual revenue by (target utilization ÷ actual utilization) when you slip. Example: need $200k at 80% but only achieve 65% ⇒ scale $200k × (80/65) ≈ $246k.
| Utilization | Billable days | Vs 100% util (multiplier) |
|---|---|---|
| 100% | 220 | 1.00× |
| 90% | 198 | 1.11× |
| 85% | 187 | 1.18× |
| 80% | 176 | 1.25× |
| 70% | 154 | 1.43× |
| 60% | 132 | 1.67× |
Subtract **public holidays** separately if your **220** already net of holidays—consistency beats false precision.
Day rate by industry: what the market actually pays
Ranges below are independent contractors billing end clients in 2025/26-style markets—not agency pass-through rates. For why agencies pay less, read freelance vs agency rate comparison.
Software engineering: about $600–1,200/day (US), £450–800/day (UK), €500–900/day (DE/FR), CHF 1,000–1,500/day (CH).
Management consulting: about $1,000–2,500/day (US), £800–1,500/day (UK), €800–1,400/day (DE/FR), CHF 1,500–2,500/day (CH).
UX / product design: about $500–900/day (US), £350–600/day (UK), €400–700/day (DE/FR), CHF 800–1,200/day (CH).
Data engineering / data science: about $700–1,300/day (US), £500–900/day (UK), €550–1,000/day (DE/FR), CHF 1,100–1,600/day (CH).
Marketing / content: about $300–600/day (US), £250–450/day (UK), €300–500/day (DE/FR), CHF 600–1,000/day (CH).
These spans reflect city premiums, language, and bench risk—your formula output should sit inside the right band or explain why (niche, regulated sector, fractional exec).
Salary to day rate formula (worked): convert salary to daily rate
The core salary to day rate formula is: loaded annual cost ÷ billable days × (1 + margin). Loaded annual cost is not HR’s “base”—it is salary + employer taxes/benefits you must replace (FICA match, health subsidy, retirement match). Billable days are not 260: subtract holidays, PTO, sick time, and non-billable admin; ~170–190 is a common consulting band before utilization math.
UK example: £50,000 salary with ~£8k employer NI + pension load → ~£58k economic cost. At 175 billable days, raw day = £58,000 ÷ 175 ≈ £331. Add 12–18% margin for bench and bad debt → £370–390/day before you round to a clean quote.
US example: $80k salary with ~$12k hidden load (FICA match + health slice) → ~$92k. At 170 days, $541/day raw; with 15% margin → ~$620/day. A day rate calculator only works if pension and benefits are in the numerator—skip them and you under-quote.
For a full take-home cross-check, run the same lifestyle through our US calculator (or your country page) after you derive the rate—convert salary to daily rate on paper, then verify net parity in the tool.
FAQ
Use **billable** days, not HR vacation-inclusive calendars.
Scale gross pro-rata; employer load % often similar until thresholds.
Employees may get **1.5×**; freelancers should price **rush** explicitly.
Deduct **10–15** days from raw availability depending on country.
If planning leave, amortize lost revenue across prior years’ rates.
Round **up** to nearest **$25/€25**—clients anchor on clean numbers.
Retainers smooth cash; divide **monthly** by **expected days** for implied day rate.
Fix currency or add **~2–4%** hedging buffer on cross-border deals.