Contractor vs Permanent
Which path puts more money in your pocket?
What This Calculator Does
This calculator compares the total financial package of a permanent role (including pension, holiday, sick pay) against a contracting day rate to help you make an informed decision. It is designed for professionals deciding between contracting through a limited company and permanent employment.
How the Calculation Works
It converts a permanent salary into total cost of employment (adding employer NI, pension, benefits), then compares against a daily rate adjusted for unpaid leave, accountancy fees, insurance, and corporation/dividend tax.
Common Scenarios
A £60,000 permanent salary with 5% pension match might equate to a £350/day contracting rate once you account for holiday, sick pay, and tax efficiency. IR35 status significantly affects the calculation.
Related Calculators
You might also find these useful: Ir35, Umbrella, Self Employed, Dividend Tax. Or use our main salary calculator for a complete take-home pay breakdown.