Daily Wage
Turn a day rate into weekly, monthly and yearly income, with or without unpaid weeks off.
Recent
Formula
How the calculation works
A day rate only becomes an income once you decide how many days a year are actually worked. Fifty-two weeks is the nominal figure; 46 to 48 is what a contractor with holidays and quiet periods really bills.
That choice is the whole calculation. At 150 a day the nominal year is 39,000 and the realistic one is nearer 34,500 -- a difference of a month's income, which is exactly the gap that makes a rate look generous and then disappoint.
Common mistakes
- Quoting the fifty-two-week figure as annual income. It is a ceiling, not a forecast, and it makes a rate look better than the work will deliver.
- Comparing a day rate with a salaried job without counting paid holiday, sick leave and pension, all of which the salaried figure already contains.
When to use it
- Use it when a contract quotes a day rate and you need to put it beside a monthly salary to see which is really better.
- It is also the tool for setting a rate: work backwards from the annual income you need and see what day rate delivers it.
Worked example
At 150 a day, 5 days a week for 52 weeks: 750 a week, 3,250 a month, 39,000 a year.
Common questions
Why change the weeks per year?
A freelancer or contractor is not paid for holidays or idle weeks. Fifty-two weeks flatters the figure; 46-48 shows what the year really holds.
Why divide the year by twelve?
Dividing the year by twelve expresses the income as a steady monthly figure so it can be set against monthly costs. Real months will vary.
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