Understanding Day Rates
A day rate is a fixed fee charged for a full day of work. In the UK freelance market, a "day" typically means 7-8 working hours, though this varies by industry and should always be specified in your contract.
Day rates are the standard billing method for many professional services, particularly in IT contracting, consulting, design, and creative industries. They're how most recruiters and agencies list contract opportunities.
When you quote a day rate, you're committing to deliver a day's worth of productive work. This includes reasonable breaks but not extended lunches or personal errands. Most clients expect you to be available and working during core business hours.
💡 Practical Example
A UX designer quotes a day rate of £450. The client books them for 3 days per week over 4 weeks. Total project cost: £450 × 12 days = £5,400. Both parties have clear expectations about time investment and cost.
Understanding Hourly Rates
An hourly rate charges for each hour worked, tracked precisely. This model is common in legal services, some creative work, and projects where scope is highly variable or difficult to estimate.
Hourly billing requires accurate time tracking. You'll need to record start and end times, ideally with some description of work performed. Many clients expect detailed timesheets showing exactly how their money was spent.
The advantage of hourly billing is flexibility—you charge for exactly what you work, no more, no less. The disadvantage is administrative overhead and the potential for disputes over hours logged.
💡 Practical Example
A copywriter charges £75/hour. Over a month, they log 22.5 hours across multiple small tasks—some briefs taking 30 minutes, others taking 3 hours. Total invoice: £1,687.50 for exactly the work completed.
Pros and Cons of Each
Day Rate Advantages
- Predictable income: Easy to forecast earnings based on booked days
- Less admin: No detailed time tracking required
- Efficiency rewarded: If you work faster, your effective hourly rate increases
- Simpler negotiations: One number to discuss with clients
- Industry standard: What most serious clients expect for professional services
Day Rate Disadvantages
- Scope creep risk: Days can stretch beyond 8 hours without additional pay
- All-or-nothing: Difficult to bill for 2-3 hour tasks
- Commitment required: You're expected to be available the entire day
Hourly Rate Advantages
- Precise billing: Charge for exactly what you work
- Flexibility: Easy to handle small, variable tasks
- Protected time: Extra hours mean extra pay
- Lower commitment: Client can scale up or down easily
Hourly Rate Disadvantages
- Income cap: Limited by hours available—efficiency isn't rewarded
- Admin burden: Time tracking and timesheet preparation
- Client scrutiny: Potential disputes over hours logged
- Perception issues: Can seem less professional for senior work
When to Use Day Rates
Day rates work best in these situations:
Long-term contracts: When you're working 3-5 days per week for weeks or months, day rates provide clarity and stability. Both you and the client know exactly what's expected.
On-site work: If you're working at a client's office, day rates reflect the commitment of your time and presence. It's awkward to charge hourly when you're sat at their desk.
Senior or strategic work: Consultants, strategists, and senior specialists typically charge day rates. It signals that you're providing professional expertise, not just filling hours.
Clearly scoped projects: When the work is well-defined and you can estimate effort accurately, day rates provide clean project pricing—e.g., "This will take 5 days at £500/day."
💡 Practical Example
A business analyst is hired to support a digital transformation project. They agree to 4 days per week at £600/day for 3 months. Monthly income: £600 × 16 days = £9,600. Clean, predictable, professional.
When to Use Hourly Rates
Hourly rates are the better choice when:
Variable, ad-hoc work: Ongoing support, maintenance, or reactive work that varies week to week. A retainer with hourly billing lets clients use you as needed.
Small tasks: When projects involve many 1-3 hour pieces of work, hourly billing is more practical than fractional day rates.
Uncertain scope: For projects where scope is genuinely unclear, hourly billing protects you from underestimating. "I'll track hours and invoice at £80/hour" removes estimation risk.
Client preference: Some clients—particularly American companies—strongly prefer hourly billing because it matches their internal tracking systems.
💡 Practical Example
A WordPress developer provides ongoing support for 5 small business clients. Each sends ad-hoc requests—a plugin update here, a content change there. Charging £60/hour with 15-minute increments lets them bill accurately for 2 hours this week, 6 hours next week, without committing to full days.
Converting Between Them
The standard conversion assumes an 8-hour working day, but smart freelancers adjust this based on reality.
Day rate to hourly rate:
Simple version: Day rate ÷ 8 = Hourly rate
Realistic version: Day rate ÷ 6.5 = Hourly rate (accounting for admin, context-switching, and the flexibility premium)
Hourly rate to day rate:
Simple version: Hourly rate × 8 = Day rate
Realistic version: Hourly rate × 7 = Day rate (since you'll likely work closer to 7.5-8 productive hours)
💡 Practical Example
Your day rate is £520. A client asks for your hourly rate for small tasks.
Simple: £520 ÷ 8 = £65/hour
With flexibility premium: £520 ÷ 6.5 = £80/hour
The higher hourly rate compensates for the administrative overhead and lack of guaranteed hours when billing hourly for small pieces of work.
Client Expectations
Understanding client expectations helps you choose the right billing model and avoid misunderstandings.
Corporate clients typically expect day rates for professional services. They budget in "days" and have processes built around this. Quoting hourly can seem junior or administrative.
Small businesses often prefer hourly rates because they're watching every pound. They may baulk at paying £500 for a day when they only need 3 hours of work.
Startups vary widely. Well-funded startups often prefer day rates (simpler to budget). Bootstrapped startups may prefer hourly (tighter control).
Agencies usually want day rates, especially for longer bookings. It aligns with how they bill their own clients.
When in doubt, ask: "Would a day rate or hourly rate work better for how you plan to use me?" Let the client's systems guide your choice. You can always quote both options: "My day rate is £480, or £75/hour for smaller pieces of work."
Finally, always confirm what a "day" means in your agreement. Is it 7 hours? 7.5? 8? Does it include a lunch break? Clarifying upfront prevents disputes later. Put it in writing: "A day rate covers 7.5 hours of productive work within standard UK business hours."