Day Rate Calculator
Work backwards from the income you need. Factor in expenses, holidays, working days and non-billable time to set a realistic day and hourly rate.
Calculator
Enter the annual income you want from the business, your expenses, working days and how much of that time is typically billable.
Income & availability
Results
Hourly rate assumes an 8-hour day. This is a planning guide, not tax advice.
How This Calculator Works
What it does
This calculator estimates the daily and hourly rates a UK self-employed tradesperson should charge to achieve a target annual income while covering business expenses and allowing for non-billable time.
How the calculation works
The calculator adds your desired annual income and business expenses to determine the annual turnover required.
It then calculates your available working days by subtracting holidays from your annual working days.
A billable time percentage is applied to account for time spent quoting, travelling, administration and other non-chargeable work.
The recommended daily rate is calculated by dividing the required annual turnover by the estimated billable days.
The hourly rate assumes an eight-hour working day.
Formula
- Annual Turnover Required = Desired Income + Business Expenses
- Available Days = Working Days − Holiday Days
- Billable Days = Available Days × Billable %
- Daily Rate = Annual Turnover Required ÷ Billable Days
- Hourly Rate = Daily Rate ÷ 8
Why it matters
Many self-employed tradespeople only calculate their day rate using the days they work, rather than the days they can actually charge customers. Allowing for non-billable time helps ensure your pricing covers your costs and delivers the income you want.
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Frequently asked questions
Straight answers about this calculator and how UK trades use the figures day to day.
Is desired income before or after tax?
Treat it as the amount you want the business to produce for you before personal tax. Speak to an accountant for take-home estimates.
What expenses should I include?
Van, fuel, tools, insurance, phone, accountancy, marketing, and other overheads you need the day rate to cover.
Why use a billable time percentage?
Quoting, travel, admin and quiet periods are real days in the year that customers do not pay for. 80% is a sensible starting point for many trades.
Why subtract holiday days?
You still need income for weeks you are not on site. Spreading the year across fewer available days raises the rate you must charge.
What if I do not work 8-hour days?
Use the daily rate as your main figure, or adjust the hourly result to match your typical day length.
Should I add profit on top?
Desired income can include profit you want to retain. Many trades also add contingency for quiet periods.
How do I use this on quotes?
Multiply your day or hourly rate by expected time, then add materials, or build the full quote in Total Tradesmen.
Price The Day. Run The Job Properly.
Manage jobs, invoices and customers with Total Tradesmen once your rate is set.
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