Free tool
Day rate calculator for tradespeople
Work out the day rate you actually need to charge, based on what you want to earn, what the business costs to run, and the days you really work.
Your sustainable day rate
£250
around £31 per hour on an 8-hour day
- Billable days per year
- 230 days
- You need to earn (income + costs)
- £48,000
- Break-even day rate (before profit)
- £209
- Yearly turnover at this rate
- £57,600
How the calculation works
Add your target income to your annual running costs, then divide by the number of days you can realistically bill. Most tradespeople overestimate their working days: once holidays, quoting visits, admin, training and bad weather come out, 200 to 230 billable days a year is typical for a five-day week. The profit margin goes on top so the business has a buffer for quiet months, new tools and growth.
Common mistakes when setting a day rate
- Copying a competitor's rate without knowing your own costs.
- Counting every weekday as billable and forgetting admin and travel days.
- Charging only enough to cover costs, leaving nothing for slow periods.
- Forgetting that materials markup and your day rate do different jobs.
For the full picture on pricing labour, materials, VAT and profit, read our guide to pricing a job.