Why a day rate isn't just hourly × 8
A working day contains breaks, context-switching, emails, and meetings that aren't really deliverable time. Most contractors price a day as 7 billable hours, not 8 — and some use 6. Setting your day rate at hourly × 8 quietly discounts your work; setting it at hourly × 7 keeps your pricing consistent.
Day rates also shift risk. With an hourly arrangement the client pays for exactly what they use; with a day rate you're committing the whole day to them, which means turning other work away. That exclusivity is why experienced contractors often price day rates at a slight premium to the hourly equivalent rather than a discount.
When to quote which rate
Hourly suits small, unpredictable tasks. Day rates suit on-site work, workshops, and engagements where the client books your full attention. Weekly rates suit longer contract stints and make invoicing simpler for both sides. Whatever you quote, anchor it to the same underlying hourly floor so different pricing formats don't accidentally pay you differently for the same work.
Frequently asked questions
- How many billable hours are in a day rate?
- Convention varies by industry, but 7 hours is the most common assumption, with 6–8 as the normal range. State the assumption in your contract so a 10-hour on-site day doesn't get billed as one standard day.
- Should a weekly rate be discounted?
- A small discount (around 5–10%) for guaranteed multi-week bookings is common because it reduces your income volatility. Anything deeper usually isn't justified — the client is already getting priority access to your time.
- How is a monthly rate calculated from a weekly one?
- A month averages 4.33 weeks (52 weeks ÷ 12 months), which is the multiplier this calculator uses. Using a flat 4 weeks per month undercharges you by about 8% per year.