Use our free contractor calculator to figure out your net take-home pay. Our calculator is simple to use and will show you an estimate of your payment after taxes, National Insurance contributions and Cool Company’s fee are applied. No hidden costs or surprise charges! Cool Company is here to make contracting easier for you.
Do you want to calculate your take-home pay after deductions? Simply enter your umbrella rate and the frequency of payments (weekly/monthly). Our contractor calculator will show the take-home pay you can expect from your contract.
*Our contractor calculator provides an estimate with the following assumptions: Class 1 national insurance, 1257L tax code, and the umbrella rate includes and uplift for employment costs.
How to use the contractor calculator
Our pay calculator estimates how much you will receive as take-home pay when contracting. Simply enter the following information and we calculate your take-home pay after deductions:
- Enter your umbrella rate in the first box above.
- Choose between weekly or monthly schedule in the drop-down menu.
- Our take-home pay calculator will automatically show your net take-home pay after deductions.
Calculate take-home pay
It is not always easy to quote your client correctly as an umbrella employee. By using our contractor calculator, you can figure out your net take-home pay, i. e. calculate your take-home pay after deductions.
How much should I quote as a contractor?
Thinking through how much you want to take home and how much to quote your client, are important steps when you operate as an umbrella employee.
As a rule, you will keep about half of the amount you have invoiced – make sure to use our simple contractor calculator for a more detailed estimate. What happens to all the money along the way? Read on and find out which factors influence your net take-home pay.
Note: Once you have opened your free account with Cool Company, you can take all the time you need to decide on your rates. With us, you pay nothing until your client pays their invoice.
What influences my take-home pay?
What you invoice to your client is far from the same as what you can take home. In the UK, deductions are made set out by HMRC. Cool Company ensures that all deductions are made and submitted to HMRC as you are our umbrella employee.
Here are the most important factors you will have to consider when you want to calculate your take-home pay:
National insurance is a deduction made on your earnings to qualify for benefits such a state pension, sick pay, or maternity and paternity leave. Your contributions are paid in your personal National Insurance account.
All employees are entitled to a minimum of 5.6 weeks holiday per year. Holiday is calculated at 12.07% of the gross income and should be included in your umbrella rate quoted to your client.
Income Tax is the tax you pay on your income. How much tax is determined by your personal tax code and the amount you receive; your tax code is set by HMRC.
How to calculate your take-home pay with Cool Company
Cool Company offers you a complete service! We take care of all paperwork and handle the invoices to your clients. As soon as the customer has paid the invoice and the money has arrived, make all required deductions, and pay you the net take-home pay.
3 easy steps from invoice to take-home pay
Learn how to calculate how much of your invoice will become your take-home pay.
1. Basic Rate
Say you want to know how much to quote your client for your work. To do this you need to understand what your umbrella rate is. First, work out how much your time is worth and how much per hour or per day you want the client to pay for the work you perform. This would be your basic rate.
2. Employer contributions and Cool Company margin
Now you understand your base rate, you will need to uplift your rate to cover employer costs. These costs include Employers National Insurance and Employers Pension (optional). To calculate the uplift, we suggest adding 13.8% of your base rate for Employers National Insurance and 3% of the base rate to cover the Employers Pension contributions.
You may want to add Cool Company’s margin into the costs which are fixed at £22.50 (for weekly payments) or £80.00 (for monthly payments).
3. Income Tax
Once your invoice has been paid, Cool Company will then deduct the uplifted costs detailed above and your National Insurance contributions, pension and Income Tax. Once this has been deducted, we will send you the remaining funds which are your take-home pay.
Income tax is calculated using your HMRC issued tax code; some individuals may have other deductions for student loads or attachment of earnings. All of these are instructed by HMRC.
Cool Company will display all deductions and calculations to you on your payslip.
1. How much is my salary after taxes?
As a contractor, you need to consider both taxes and National Insurance contributions as well as our margin for managing your administration. Feel free to use our contractor calculator at the top of the page to calculate your take-home pay.
2. How to calculate net salary from gross salary?
Your net payment is the amount you will have paid into your bank account after all deductions are made from the invoice payment. You can use our contractor calculator if you want to determine your net payment based on your umbrella rate.
3. How much should I charge as a contractor?
How much you quote is an agreement between you and your client, but keep in mind when stating your umbrella rate to include employers costs also as theses will be deducted from the total invoice value. The remaining part is your net payment. Use our contractor calculator to figure out your take-home pay.