UNDERSTAND YOUR NUMBERS

Contractor Risk Premium Calculator

Compare 0%, 5%, 10%, 15% and 20% uplifts on break-even to budget for uncertainty and negotiate a target.

Tax year 2026/27 · Last verified 5 October 2026 · Methodology · Official sources

Find your replacement rate

2026/27

Permanent annual salary (£) Annual bonus (£) Employer pension (%) Employee pension (%) Billable days before gaps Contract gap daysNon-cash benefits value (£)Desired package uplift (%) Risk premium (%)

Your estimate

Gross package excluding employer NI: £94,500
Permanent annual cash: £60,057
Permanent pension value: £9,000
Inside cash break-even (£/day): £443
Outside cash break-even (£/day): £419
Inside package break-even (£/day): £526
Outside package break-even (£/day): £505
Inside minimum acceptable (£/day): £526
Outside minimum acceptable (£/day): £505
Inside risk-adjusted target (£/day): £579
Outside risk-adjusted target (£/day): £556
Inside at 0% risk (£/day): £526
Outside at 0% risk (£/day): £505
Inside at 5% risk (£/day): £526
Outside at 5% risk (£/day): £505
Inside at 10% risk (£/day): £526
Outside at 10% risk (£/day): £505
Inside at 15% risk (£/day): £526
Outside at 15% risk (£/day): £505
Inside at 20% risk (£/day): £526
Outside at 20% risk (£/day): £505

Permanent package

£60,057 annual cash

£9,000 pension

£69,057 cash + pension

Show calculation

Gross employment cash: £90,000
Salary + bonus + cash car allowance.

Salary sacrifice: £0
Reduces taxable pay and NI pay; added to employer pension.

Employee pension: -£4,500
Net-pay arrangement: reduces income tax, not NI. Percentage of base salary.

Personal allowance: £12,570
£12,570 reduced £1 for every £2 of adjusted net income above £100,000.

Income tax at 20 %: £7,540
£37,700.00 × 20 %

Income tax at 40 %: £14,092
£35,230.00 × 40 %

Incremental personal tax: -£21,632
Total personal tax with this job less tax on other income alone.

Employee NI: -£3,811
Annual category A estimate: 8% between £12,570 and £50,270; 2% above.

Student loan: £0
Annualised repayments attributable to this job.

Net cash: £60,057
Annual spendable cash from this scenario; excludes other income.

Employer pension: £4,500
Employer contribution plus salary sacrifice.

Employer NI including Class 1A: £12,750
Employer cost, not deducted from your salary.

Benefits value: £0
Gross non-cash value, separately labelled.

Planning estimate, not advice. Monetary examples use England, no other income or loans. No automatic levy, umbrella fee or pension charge is assumed. Outside IR35 uses £3,000 annual expenses; company tax assumes a full accounting year.

Worked example: £600/day

220 billable days give £132,000 revenue. These figures use the same engine as your comparison.

Inside IR35

£74,423 annual cash

£121,848 cash-equivalent salary

Outside IR35

£78,666 annual cash

£133,093 cash-equivalent salary

Make it yours

England, no loans or other income. Inside: assignment rate, no margin, levy or pension. Outside: £3,000 expenses, Personal Allowance salary, no pension or retained profit. Salary comparison: 5% employee and employer pension.

Compare with your salary

How this calculation works

Multiply package break-even by each uplift. Billable days already reflect quantified gaps; avoid counting the same loss in both downtime and premium.

Important assumptions

Annual estimates, England by default, no other income or student loan. Illustrations use £3,000 company expenses, no opening reserves and a 12-month accounting period. Pension, gross benefits and retained profit are not spendable cash.

Choose deliberately

Termination risk, unpaid sickness, training and lack of employment redundancy protection can affect the rate you accept. Percentages here are scenarios, not measured probabilities or market-rate recommendations.

Frequently asked questions

Is revenue the same as take-home?

No. Employment costs, expenses and taxes can apply before money reaches you. Pension and retained profit are separate.

Can this decide IR35 status?

ContractorMoney.co.uk does not determine IR35 employment status. We model financial consequences after you select a status.

Sources and review