Tradesman Day Rate Calculator: What Should You Charge In 2026?

Most self employed tradespeople set their day rate by asking a mate what he charges, then knocking a bit off to win work. It feels safe, but it is the quickest way to end up busy and broke. A day rate has to pay you, pay the taxman, run the van, replace the tools and cover every day you are not on a job.

This calculator works backwards from the money you want to take home. It grosses that figure up for income tax and National Insurance, adds your overheads, then divides by the days you can realistically bill. The result is the minimum day rate that keeps your business healthy.

Calculator

Work through these five steps with your own figures. A worked example follows so you can see the arithmetic.

1. Target take home pay. What you want in your pocket for the year after tax.
2. Gross up for tax. Work out the profit you need before income tax and Class 4 National Insurance to leave that take home figure.
3. Add overheads. Van, fuel, tools, insurance, phone, accountant, trade association fees and anything else the business pays for.
4. Count billable days. Take 52 weeks, remove holidays, bank holidays, sick days, quoting, admin and bad weather.
5. Divide. Day rate = (profit needed + overheads) ÷ billable days.

Tax rates used for 2026/27

Checked October 2026: GOV.UK, Income Tax rates and allowances, and Self-employed National Insurance rates. Scottish taxpayers have different income tax bands, so adjust step 2 if you live in Scotland.

Worked example

Dan is a self employed plasterer outside London. He wants £32,000 a year in his pocket.

Step 2, gross up. On a profit of £40,000, income tax is 20% of (£40,000 minus £12,570), which is £5,486. Class 4 National Insurance is 6% of the same £27,430, which is £1,646. Take home is £40,000 minus £7,132, which is £32,868. So a profit of about £39,000 to £40,000 gets Dan to his target.

Step 3, overheads.

Step 4, billable days. 52 weeks × 5 days is 260 days. Take off 20 days of holiday, 8 bank holidays, 5 sick days and 1 day a fortnight for quoting, buying and paperwork (26 days). That leaves 201. Allow another 10 days for gaps between jobs and Dan has about 190 billable days.

Step 5, divide. (£40,000 + £12,800) ÷ 190 = £278 a day, or about £35 an hour on an eight hour day.

The calculator above grosses up exactly, so it needs a profit of £38,827 and gives £272 a day for the same figures. Rounding the profit up to £40,000, as here, builds in a small buffer.

That is his floor. Charging less means working for less than his target, however busy he is.

Overheads to include

The overheads that catch people out are the ones that do not arrive as a monthly bill:

• Van replacement. If your van will need replacing in five years, put a fifth of its cost into the overheads each year, even if it is paid off.
• Tool wear. Mixers, SDS drills and laser levels all die eventually.
• Unpaid time. Quoting, travelling to merchants, chasing invoices and doing the books are real work, which is why they come off your billable days.
• Pension. Nobody pays into it for you. If you want to put 5% of your profit away, add it to your target take home.
• Insurance. Public liability, tool cover and income protection if you want it.

Regional averages

Once you have your floor, compare it with what customers are used to paying. Checkatrade's October 2026 guide gives these UK averages:

Checked October 2026: Checkatrade, How much do tradespeople cost in the UK in 2026. Rates in London are higher than elsewhere.

If your floor sits well above your local average, look at your overheads and billable days before you blame the market. If it sits well below, you have room to charge more. For a closer look at rates in your trade, see our guides to plasterer day rates, builder day rates and the UK tradesmen day rates index.

Pricing tips

• Price the job, not the day, where you can. Customers like fixed prices, and if you are quick, you keep the benefit.
• Add a minimum charge. A one hour job still costs you travel, parking and a slot in your diary. Many trades charge a half day minimum.
• Charge for materials separately. Add a handling margin to cover collection and the risk of returns.
• Review your rate every April. Tax bands, fuel and insurance all move, so recheck your figures each new tax year.
• Do not race to the bottom. The cheapest trade in town gets the worst customers.

Want a steady flow of local work at your rate? Sign up as a trade and we will send you jobs in your area.

FAQs

How do I work out an hourly rate from a day rate?

Divide by the hours you actually work on site. For an eight hour day, a £280 day rate is £35 an hour. Many trades charge a little more per hour for short jobs to cover travel.

Should I charge VAT?

You must register for VAT once your taxable turnover goes over the threshold, which is £90,000 at the time of writing. If you are registered, add 20% on top of the day rate this calculator gives you.

What is a fair day rate for a labourer?

Checkatrade's 2026 guide puts labourers at £120 to £280 a day. If you take a labourer on, remember that their pay is a cost to you, so it goes into your own pricing.

Why are London day rates higher?

Higher living costs, congestion charges, parking and longer travel times all push up the cost of doing business in London, and day rates reflect that.

Does the calculator include pension contributions?

Only if you add them. Put the amount you want to save into your target take home figure and the calculator will gross it up.