Day rate calculator for trades
Charging the same as the next person isn't a plan. Put in the pay you want and what your business costs to run, and see the day rate that gets you there.
How the day rate is worked out
Add the pay you want to what the business costs to run, then divide by the days you can actually charge for:
Day rate = (pay you want + business costs) ÷ days you can charge for
Days you can charge for are the weeks you work, less 8 bank holidays (England and Wales; 9 in Scotland, 10 in Northern Ireland) and the days that go on quoting, buying materials, paperwork, travel, bad weather and illness. Most trades lose 20 to 40 days a year this way, which is why a rate based on 52 full weeks always comes out too low.
Check it against your area
Once you know the rate you need, compare it with what others in your area charge. If yours is much higher, look at your costs or the work you take on. If it's lower, you've probably been undercharging.
Charging for materials
Materials you buy for a job are usually charged on top of your day rate. Many trades add a handling margin for the time spent sourcing and collecting them. Whatever you do, keep your receipts: they're business costs for your tax return.
Get paid what you charge
A good day rate only helps if the invoice gets paid. PaySorted sends the invoice from your phone and chases late payers for you.
Questions
How do I work out my day rate?
Add the yearly pay you want to your yearly business costs, then divide by the number of days you can actually charge for, after holidays, bank holidays and days lost to quoting, admin, travel and weather.
How many days a year can a tradesperson charge for?
Typically 190 to 220. Working 5 days a week for 48 weeks gives 240 days; take off 8 bank holidays and 20 to 40 days for quoting, admin, travel and weather.
Should a half day be half my day rate?
Many trades charge more than half, because the rest of the day is often hard to fill. The calculator shows a straight half as a starting point.
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