How to Calculate Your Day Rate as a Self-Employed Tradesperson
Why your day rate matters
Getting your day rate wrong is one of the most common mistakes self-employed tradespeople make. Charge too little and you will work long hours for less than you would earn as an employee. Charge too much and you will struggle to win work.
This guide walks you through how to calculate a day rate that covers your costs, accounts for non-billable time, and leaves you with a fair profit.
The day rate formula
The basic formula is:
Day Rate = (Target Annual Income + Overheads) / Billable Days Per Year
Use our day rate calculator to run the numbers instantly — just enter your target income, working pattern, and holiday days.
Step 1: Decide your target annual income
Start with what you want to take home after tax and expenses. For most UK tradespeople, this is somewhere between £30,000 and £60,000 depending on your trade, experience, and location.
Remember to account for your tax bill — use our self-assessment calculator to estimate what you will owe HMRC.
Step 2: Add your business overheads
On top of your personal income, your day rate needs to cover:
- Van costs (insurance, fuel, maintenance, finance)
- Tools and equipment
- Public liability and professional indemnity insurance
- Accountant fees
- Software subscriptions (invoicing, accounting)
- Marketing and website costs
- Phone and broadband
Step 3: Calculate your billable days
You cannot bill for every working day. Account for:
- Weekends (104 days)
- Bank holidays (8 days)
- Annual leave (20-25 days)
- Sick days (5-10 days)
- Admin, quoting, and unbillable time (15-25 days)
This typically leaves 200-220 billable days per year. Our day rate calculator handles all of this automatically.
Example calculation
Target income: £40,000. Overheads: £8,000. Billable days: 210.
Day rate = (£40,000 + £8,000) / 210 = £228.57 per day
You might round this to £230 or £240 to give yourself a margin.
Day rates by trade (2025/26 averages)
These are rough UK averages — rates vary significantly by region and experience:
- Plumber: £200-£350/day
- Electrician: £200-£350/day
- Builder/bricklayer: £180-£300/day
- Roofer: £200-£320/day
- Plasterer: £180-£280/day
- Carpenter/joiner: £180-£300/day
- Painter & decorator: £150-£250/day
Invoice at your true rate
Once you know your day rate, make sure your invoices reflect it. Try InvoiceAdept free to create professional invoices that show your customers exactly what they are paying for.