Free calculator

Tradesperson Day Rate Calculator

Charging too little is the quiet killer of a trade business. Enter the income you want, your yearly overheads, and the days you can realistically bill to see the day rate and hourly rate you actually need to charge.

Your numbers

Adjust these to match your business. Nothing is saved or sent anywhere.

Your wages before tax: what you want the business to pay you.

£

Van, fuel, insurance, tools, software, accountant: everything but materials for a job.

£

After weekends, holidays, sick days, quoting, and admin. Most sole traders manage 200-230.

days

Used to work out your hourly rate.

hours

Day rate to charge

£220

Covers £40,000 wages plus £8,000 overheads across 220 billable days.

Hourly rate

£27.50

Based on 8 chargeable hours a day.

Revenue you need

£48,000

Total the business must turn over before materials.

Knowing your real rate is one thing. Being able to hold it is another. A professional website makes you look worth the price, so you win the right jobs instead of racing to the bottom on cheap ones.

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Disclaimer: These calculators are provided for general guidance only. Results are estimates based on the figures you enter and may not reflect your full costs, tax position, legal obligations, or business circumstances. They are not financial, tax, legal, or professional advice. You should check the figures yourself and speak to a qualified adviser where needed. Kwise Web accepts no liability for decisions made using these tools.

Why your day rate is higher than your wages

You cannot bill every day

Weekends, holidays, illness, quoting, and quiet weeks mean the calendar year of 260 weekdays becomes far fewer paid days.

Overheads never stop

Van, fuel, insurance, and tools cost money whether you work or not. Your rate has to cover them across your billable days.

Undercharging hides the problem

A low rate can keep you flat out and still short at year end. Pricing to your real numbers is how you get ahead.

How this is calculated

Every result comes straight from these formulas, with no hidden assumptions.

  1. Revenue you need

    Income you want to take home + Business overheads

  2. Day rate

    Revenue you need ÷ Billable days (rounded up to the nearest £5)

  3. Hourly rate

    Day rate ÷ Chargeable hours per day

Questions

How do I work out my day rate?

Add the income you want to take home to your yearly business overheads, then divide by the number of days you can actually bill in a year. That covers your costs and your wages across real working days, not the 260 weekdays on the calendar.

How many billable days are there in a year?

There are around 260 weekdays, but holidays, illness, quoting, admin, travel, and quiet spells all eat into that. Most sole traders realistically bill 200 to 230 days a year, which is why the calculator defaults to 220.

Why is my day rate higher than I expected?

Because a day rate has to cover more than wages. Overheads like your van, fuel, insurance, tools, and unpaid admin days all have to be recovered across the days you actually charge for. Charging too little is the most common reason trades stay busy but never get ahead.