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Monthly Contractor Income Planner
Know your day rate and employment structure? See your expected monthly and annual take-home pay with real working days, bank holidays, and pension contributions. Plan your cash flow month by month.
Compare with a previous year
Select a change to see how it affected your results
Older changes are shown for reference but don't have historical rate data available for comparison.
How is this calculated?
The calculator multiplies your day rate by the actual working days in each month (excluding weekends and UK bank holidays) to get your monthly gross income. Pension contributions are deducted from gross before tax calculations.
The annual tax calculation determines your effective tax rate for the full year, which is then applied proportionally to each month's income. This gives a realistic month-by-month estimate that accounts for the progressive tax system.
For limited company directors outside IR35, the calculation accounts for salary, employer NI, Corporation Tax, and dividend tax. Pension contributions made as employer contributions are deducted before Corporation Tax.
How have these tax rates changed?
Want to see how your income compares across different structures? Use our Compare Structures calculator for a full side-by-side comparison. Not sure about your IR35 status? Try our IR35 Status Estimator.
Frequently Asked Questions
How much will I earn per month as a UK contractor?
Your monthly income depends on your day rate, the number of working days in that month, and your tax structure. Working days per month range from about 20 (February) to 23 (some months), so your gross monthly income will vary. Use the calculator above to see a month-by-month breakdown.
How does a pension contribution affect my contractor take-home pay?
Pension contributions reduce your gross income before tax is calculated, which means you save on Income Tax and potentially National Insurance. For a limited company director, employer pension contributions are also a Corporation Tax-deductible expense. The calculator above shows your take-home pay after pension deductions.
How many working days are there in each month?
Working days vary by month due to weekends and bank holidays. February typically has the fewest (around 20 days) and months like July or October can have 23. The calculator above uses actual weekday counts for the current year, excluding UK bank holidays.
Should I contribute to a pension as a contractor?
Pension contributions are highly tax-efficient for contractors. For limited company directors, employer contributions are deductible against Corporation Tax and are not subject to Income Tax or NI. Even for PAYE/umbrella contractors, pension contributions reduce your taxable income. Most financial advisors recommend maximising pension contributions within the annual allowance (£60,000 for 2025/26).
What is the difference between gross and net day rate?
Your gross day rate is what you invoice the client. Your net (take-home) day rate is what you actually keep after all taxes, NI, and other deductions. For a £500/day contractor outside IR35, the net day rate is typically £340-£380 depending on your structure and total annual income.
These calculations are estimates based on current published tax rates. They do not constitute financial, tax, or legal advice. Always consult a qualified accountant for your specific situation.
Tax rates sourced from HMRC published rates for the 2025/26 tax year. Last verified: March 2026.