Day rate calculator for tradespeople
Quick answer
Minimum day rate = (target profit + yearly business costs) ÷ (working weeks × billable days per week). For example, £40,000 profit plus £12,000 of costs over 46 weeks of 4 billable days gives £52,000 ÷ 184 = £282.61 a day, or £35.33 an hour over 8 hours. Quote above that floor.
On this page
Work out the lowest day rate and hourly rate you can charge and still hit your income target. Enter the profit you want, your yearly costs, how many weeks you will work and how many days a week you can actually bill.
How do I use the day rate calculator?
- Target profit per year. The profit you want the business to make before income tax and National Insurance. This is what you live on and pay tax from.
- Yearly business costs. Van, fuel, insurance, tools, phone, software, accountant, memberships, lead fees and training. Leave out materials you charge back on each job.
- Working weeks. 52 minus holidays, bank holidays and a buffer for sickness, bad weather and quiet spells.
- Billable days per week. Days you are on paid work. If Friday afternoons go on quotes and paperwork, that is 4.5, not 5.
- Hours per day. The paid hours in a typical day, used to turn your day rate into an hourly rate.
What is the day rate formula?
Billable days = working weeks × billable days per week
Minimum day rate = (target profit + yearly costs) ÷ billable days
Minimum hourly rate = day rate ÷ hours per day
The formula is simple. The hard part is being honest about billable days. Most tradespeople lose time every week to quoting, site visits, buying materials, travel between jobs and invoicing. If you plan on five billable days and really bill four, your real income falls by a fifth.
How many weeks to allow for time off
GOV.UK says most employees on a five-day week must get at least 28 days' paid leave a year (5.6 weeks), which an employer can count bank holidays towards. You are not an employee, but it is a fair benchmark for the rest you need. Bank holidays vary by nation: GOV.UK lists 8 for England and Wales in 2026, and 10 each for Scotland and Northern Ireland. Using 46 working weeks leaves about 6 weeks for holidays, bank holidays and the odd sick day.
Worked day rate examples
| Input | Plasterer | Electrician | Domestic cleaner |
|---|---|---|---|
| Target profit | £40,000 | £50,000 | £25,000 |
| Yearly costs | £12,000 | £15,000 | £5,000 |
| Working weeks | 46 | 45 | 47 |
| Billable days a week | 4 | 4.5 | 5 |
| Hours a day | 8 | 8 | 7 |
| Billable days a year | 184 | 202.5 | 235 |
| Minimum day rate | £282.61 | £320.99 | £127.66 |
| Minimum hourly rate | £35.33 | £40.12 | £18.24 |
Plasterer: the full sum
£40,000 + £12,000 = £52,000 needed. 46 weeks × 4 days = 184 billable days. £52,000 ÷ 184 = £282.61 a day. Over 8 hours, that is £35.33 an hour. If the same plasterer could bill 5 days a week, the minimum would drop to £226.09 a day, which shows how much admin time costs.
What happens after tax?
Your target profit is before tax. For the 2026/27 tax year, GOV.UK sets self-employed Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% above that. Income tax is on top; check GOV.UK income tax rates for the current bands, which differ in Scotland. On the plasterer's £40,000, Class 4 alone is 6% of £27,430, or £1,645.80.
For what other trades are charging, see our guide to tradesperson day rates in the UK.
How to find your yearly costs
Pull last year's bank statements or your accounts and list every business cost. A typical list for a sole trader in the trades:
- Vehicle: finance or lease, fuel, servicing, tyres, insurance, road tax and parking.
- Insurance: public liability, and tools, professional indemnity or employer's liability if you need them.
- Tools and equipment: replacements, repairs, calibration and PPE.
- Office: phone, software subscriptions, accountant, bank charges and stationery.
- Marketing: website, lead platform fees, signage and printed material.
- Compliance: scheme memberships, certificates, training and renewal fees.
Add 5 to 10% for things you forgot. It is far easier to win a job at a slightly higher rate than to recover from a year priced too low.
Turning a day rate into a job price
Say the plasterer above estimates a job at 3.5 days. Labour at the £282.61 minimum is £989.14. Add materials at cost plus markup, and VAT if registered. If the job takes 4.5 days instead, the real day rate falls to £219.81, below the floor. Record actual time on each job so your estimates improve.
What mistakes do trades make with day rates?
- Assuming 52 weeks of work. Nobody bills every week. Leave room for holidays, illness and weather.
- Counting every weekday as billable. Quoting and paperwork are real work that nobody pays for directly. Build them into your rate.
- Forgetting irregular costs. Van repairs, tool replacement, certificate renewals and annual insurance are easy to miss when you think month to month.
- Copying a competitor's rate. Their costs and hours are not yours. Use their rate as a market check, not your starting point.
- Not tracking actual hours. If jobs run over, your real hourly rate drops. Record hours per job and compare them with your quotes. Our free timesheet template makes this easy.
Use your day rate in every quote
Once you know your floor, price jobs from it: estimate the days, multiply by your rate and add materials with your markup. Our guide on how to write a quote walks through the layout. Job management apps that log time on site show you whether jobs are really earning your target rate.
Frequently asked questions
How do I work out my day rate as a tradesperson?
Add the yearly profit you want to your yearly business costs, then divide by the number of days you can actually bill. Billable days are working weeks multiplied by the days per week you are on paid jobs, not counting quoting, admin, travel between jobs or buying materials. Divide the day rate by your working hours for an hourly rate.
How many working weeks should I use?
Start from 52 and take off holidays, bank holidays and a buffer for sickness and bad weather. Employees on a five-day week get at least 28 days (5.6 weeks) of paid leave under GOV.UK rules, so 46 weeks is a sensible starting point. England and Wales had 8 bank holidays in 2026; Scotland and Northern Ireland had 10 each.
Should my target profit be before or after tax?
Use profit before income tax and National Insurance, because that is what your business needs to earn. Then check what you will take home after tax. For 2026/27, self-employed Class 4 National Insurance is 6% on profits from £12,570 to £50,270 and 2% above that, per GOV.UK, on top of income tax.
What costs should I include?
Everything the business pays for in a year that is not a specific job's materials: van finance, fuel, insurance, tools and repairs, phone, software, accountant, trade memberships, lead platform fees, training and certification. Materials you charge back to customers are usually priced separately on each job.
Is day rate the same as what I should charge?
No. The calculator gives a minimum, the break-even rate that meets your target. Your actual rate should also reflect local demand, your skills and certificates, and what competitors charge. If your minimum is above what your market will pay, cut costs, raise billable days or adjust your target.
Sources and checks
Prices, features and ratings were checked on 12 October 2026 against these sources. Software prices change often, so confirm on the vendor's site before you buy.