Hourly Rate Calculator for UK Trades
Calculate what you should charge per hour to cover your costs, pay yourself a decent salary, and make a profit. Free calculator for UK plumbers, electricians, and contractors.
Calculate Your Hourly Rate
What you want to pay yourself per year
Van, tools, insurance, marketing, accountant, etc.
Hours you can charge clients
52 minus holidays
Buffer for emergencies, reinvestment, and growth
Your Calculated Rates
Minimum Hourly Rate
£47
per hour
Day Rate (8 hours)
£376
Weekly Revenue
£1176
Revenue Breakdown:
What this means:
- • Charge £47/hour minimum to hit your goals
- • Work 25 billable hours/week for 47 weeks/year
- • Generate £55294 annual revenue
- • Keep £8294 profit for emergencies and growth
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
How to Calculate Your Hourly Rate
Most new tradespeople undercharge because they only think about materials and time. But your hourly rate needs to cover much more: van costs, tools, insurance, tax, holidays, sick days, and your actual salary.
The Real Cost of Being Self-Employed
When you work for yourself, you don't get:
- Paid holidays - 28 days/year = 5.6 weeks of zero income
- Sick pay - Average 5 days/year lost to illness
- Employer pension contributions - 3-8% of salary
- Training time - CPD courses, certifications, admin
- Employer's NI - You pay both sides as self-employed
This means you need to charge significantly more per hour than an employed tradesperson earns to achieve the same annual income.
What This Calculator Includes
Fixed Annual Costs:
- • Van lease/finance, insurance, road tax, MOT
- • Tool replacement and maintenance
- • Public liability, professional indemnity insurance
- • Accountant fees (typically £500-£1,500/year)
- • Phone, software subscriptions (Toolfy, accounting)
- • Marketing (Google Ads, website, business cards)
- • Professional memberships (Gas Safe, NICEIC, trade bodies)
Variable Costs Per Job:
- • Fuel (£0.45-£0.50/mile)
- • Small consumables (fixings, sealant, tape)
- • Payment processing fees (1.5-2.9% for card payments)
Time You Can't Bill:
- • Quoting jobs (30-60 mins per quote, 30% conversion)
- • Travel time between jobs
- • Admin (invoicing, chasing payments, tax returns)
- • Vehicle maintenance, tool shopping
- • Holidays and sick days (33+ days/year)
How to Use This Calculator
- Enter your desired annual salary - What you want to take home (before tax)
- Add your annual business costs - Van, tools, insurance, marketing, etc.
- Set your billable hours - Realistic hours you can charge clients per week
- Choose your profit margin - 10-20% recommended for growth/buffer
Important: Billable Hours vs Working Hours
If you work 40 hours/week, you might only bill 25-30 hours. The rest is travel, quoting, admin, and non-billable time. Be realistic - most sole traders bill 20-30 hours/week, not 40.
Example Calculation: Plumber in Manchester
Goals & Costs:
- • Desired salary: £35,000/year
- • Annual costs: £12,000 (van £4k, insurance £2k, tools £2k, admin £4k)
- • Billable hours: 25 hours/week (realistic for sole trader)
- • Profit margin: 15%
- • Working weeks: 47 (5 weeks holiday)
Calculation:
- • Total revenue needed: (£35,000 + £12,000) ÷ 0.85 = £55,294
- • Billable hours/year: 25 × 47 = 1,175 hours
- • Hourly rate: £55,294 ÷ 1,175 = £47/hour
This is your minimum rate to hit your goals. Many plumbers in Manchester charge £50-£60/hour for this reason.
Industry Benchmarks: UK Trades Hourly Rates 2025
| Trade | Typical Range | Day Rate |
|---|---|---|
| Plumber | £40-£60/hour | £300-£450 |
| Electrician | £35-£55/hour | £280-£400 |
| Gas Engineer | £45-£70/hour | £350-£500 |
| Carpenter | £25-£45/hour | £200-£350 |
| Decorator | £20-£35/hour | £160-£280 |
Rates vary by location, experience, and specialization. London typically 20-30% higher.
Common Pricing Mistakes
❌ Mistake: Comparing yourself to employed rates
"I used to earn £15/hour employed, so I'll charge £20/hour self-employed." Wrong. You need 2-3x your employed rate to account for costs and non-billable time.
❌ Mistake: Forgetting about tax
Your "desired salary" in the calculator should be gross (before income tax), not net. You'll pay 20-40% income tax plus 9% National Insurance on profits.
❌ Mistake: Assuming 40 billable hours/week
Solo traders typically bill 20-30 hours/week maximum. The rest is travel, admin, quotes that don't convert, and breaks. Be realistic or you'll undercharge.
❌ Mistake: Not including a profit margin
Salary + costs = breaking even, not making a profit. You need 10-20% margin for emergency funds, equipment upgrades, and business growth.
What to Do with Your Calculated Rate
- Test it on a few quotes - See if customers accept it without pushback
- Adjust for your area - London/Southeast typically +20-30%, rural areas -10-15%
- Offer value, not just time - "£50/hour" sounds expensive, "boiler service £150" doesn't
- Review quarterly - Costs rise (fuel, materials, insurance), your rate should too
Stop Guessing Your Hourly Rate
Use this calculator to set a rate that actually covers your costs and profit target. Then stick to it on quotes instead of dropping price under pressure.
Try Toolfy Free →Related Resources
- How to Handle Price Objections Without Dropping Your Rate - Scripts for dealing with "you're too expensive"
- Markup vs Margin: Pricing Guide for Trade Businesses - Understand pricing strategy beyond hourly rates
- CIS Tax Calculator - Calculate your net pay after CIS deductions (subcontractors)
- Profit Margin Benchmarks for Trade Businesses 2026 - What profit margins should you target?
Frequently Asked Questions
Should I charge more for emergency callouts?
Absolutely. Emergency callouts typically charge 1.5-2x your standard rate (nights/weekends) or 2-3x for bank holidays. This compensates for disrupting your personal time and the urgency premium customers expect to pay.
Can I charge different rates for different types of work?
Yes. Many trades charge premium rates for specialist work (gas, electrical testing) and lower rates for basic work (maintenance, inspections). Just ensure each rate covers your costs and desired profit for that type of work.
What if my calculated rate is higher than competitors?
Either your costs are too high (time to optimize), or you're underestimating billable hours. But don't automatically drop your rate - many "cheap" competitors go bust within 2 years because they can't sustain their pricing. Focus on communicating value instead.
How often should I raise my rates?
Review annually minimum, adjust quarterly if costs spike. Inform existing customers 30 days before increases. Most will accept 5-10% annual increases without complaint if you deliver good service. New customers get the new rate immediately.
Track Job Profitability Automatically
Stop calculating rates manually. Toolfy tracks time spent per job, compares against your hourly rate, and shows real-time profitability. Know which jobs make money before the invoice goes out.