Annual income target calculator

Start with the money you need to live on and work backwards: how much you must invoice, what to charge per day, and how many clients that implies.

What you need

After income tax and National Insurance.

Covers quiet months, late payers and surprise costs.

Typical revenue per client per year.

Turnover you need to invoice

£52,611

£4,384 invoiced per month

Required day rate

£299

Clients needed

4.4

At your average client value

Take-home check

£38,500

Target incl. buffer: £38,500

Compare this day rate with your current pricing in the day rate calculator, then test how trimming costs changes it with the expense impact calculator.

Working backwards beats guessing forwards

Employed pay is quoted gross, so it's easy to anchor to a salary figure and forget that a sole trader pays both the tax and the cost of running a business from the same money. Working backwards from take-home removes that gap: the number you see is the number you can spend.

Concentration risk is a pricing issue

If one client is more than about 40% of your turnover, their budget cycle becomes your budget cycle. Either diversify or price that dependency into the rate.

Frequently asked questions