Day rate
Pricing model where a freelancer charges a fixed fee per day, regardless of hours. Standard for consultants, IT contractors, and project-based professionals.
The day rate (sometimes "per diem") is the most common pricing structure for B2B freelance and contractor work in the UK. It simplifies billing, aligns expectations, and makes budgeting easier for the client.
A day is typically 7-8 productive hours. Many contractors offer half-day rates, weekly rates (5x daily, sometimes with a slight discount), or monthly retainers for ongoing work.
Day rates vary widely by sector and seniority. Determining your rate involves benchmarking peers, accounting for non-billable time (typically 60-70% utilisation), and factoring in pension, holidays, sick days, and equipment costs.
- Junior creative: £200-£400/day UK / $300-$500/day US
- Mid-level IT contractor: £450-£700/day UK / $600-$900/day US
- Senior consultant or specialist: £800-£1500+/day UK / $1000-$2000+/day US
- Calculate base rate: target annual income ÷ ~180 billable days/year