How much should I charge per hour?
Work out the hourly rate that covers your pay and your costs, or put in what you charge now and see what it really earns you in a year.
Why your hourly rate needs to be higher than it feels
An employee on £20 an hour gets paid holidays, sick pay, a van and tools. When you're self-employed, all of that comes out of your rate, and you only get paid for the hours a customer is paying for. Travel, quoting, chasing suppliers and paperwork are all unpaid.
Hourly rate = (pay you want + business costs) ÷ hours you can charge for in a year
Minimum charges and call-outs
Small jobs still take travel time and parking. Many trades set a minimum charge, such as the first hour or a half day, so a 20-minute job doesn't lose money. Put it on your quote or website so customers know before you arrive.
Day rate or hourly rate?
Hourly suits short or unpredictable jobs. A day rate is simpler for longer work and stops customers counting minutes. Try the day rate calculator too.
Questions
How much should a self-employed tradesperson charge per hour?
Enough to cover the pay you want plus your business costs, divided by the hours you can actually charge for in a year. For most trades that's 1,300 to 1,600 charged hours, not the 2,000 or so an employee works.
How many hours a week can I charge for?
Usually 25 to 35, even when you work 45 or more. Travel, quoting, buying materials and paperwork take the rest.
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