How do I calculate my day rate?
- Decide what you want in your pocket for the year.
- Add the income tax and National Insurance on the profit that leaves you that much.
- Add your business costs: van, fuel, insurance, tools, phone, accountancy and the rest.
- Work out the days you can bill: weekdays, less bank holidays, holiday, sick days, weather and unpaid time.
- Divide the total by those days, and by your hours for an hourly rate.
The shortcut of dividing a salary by 220 days leaves out the tax and every cost: £35,000 ÷ 220 is £159 a day, well short of the £320 worked out above.
How many days a year can a tradesperson actually bill?
2026 has 261 weekdays. Take off 8 bank holidays in England and Wales, 5 weeks' holiday, 5 sick days and 10 days lost to weather and you have 213. Take off 15% for quoting, travel and admin and 181 days are left to bill. Scotland and Northern Ireland have 10 bank holidays in 2026. Change any of these in the calculator.
What your day rate has to cover
Your pay, the tax and National Insurance on it, and every cost of running the business. The calculator starts from example figures: replace them with your own. The self-employed allowable expenses list says which of these HMRC lets you claim.
| Cost | Example |
|---|---|
| Van finance or lease | £4,000 |
| Fuel | £3,000 |
| Van insurance | £1,000 |
| Public liability insurance | £300 |
| Tools and equipment | £2,000 |
| Phone and internet | £600 |
| Accountancy and software | £1,000 |
| Website and marketing | £1,000 |
| Training and certificates | £500 |
| Workwear and PPE | £300 |
| Waste and consumables | £700 |
| Anything else | £600 |
Day rates by trade in 2026
Checkatrade's published figures (April 2026) (opens in a new tab), read on 19 September 2026. A range is a range: where you sit in it depends on your area, your costs and how busy you are. Checkatrade says prices in London are higher, but gives no London figures. Pick your trade in the calculator and the result says where your rate sits.
| Trade | Day rate | Hourly rate |
|---|---|---|
| Bricklayer | £240 to £320 | Not given |
| Builder | £300 | £38 |
| Carpenter | £240 to £360 | £30 to £45 |
| Electrician | £300 to £500 | £40 to £70 |
| Gardener | £150 to £250 | £19 to £31 |
| Kitchen fitter | £250 to £350 | Not given |
| Labourer | £112 to £280 | £14 to £35 |
| Landscaper | £180 to £280 | £25 |
| Painter and decorator | £250 to £350 | £30 to £40 |
| Plasterer | £300 | £37.50 |
| Plumber | £320 to £480 | £40 to £60 |
| Roofer | £280 to £360 | £35 to £45 |
| Scaffolder | £280 to £320 | Not given |
| Tiler | £200 to £350 | £40 |
| Window fitter | £200 to £250 | £25 to £35 |
Is £250 a good day rate?
It depends what it has to pay for. With the example costs above and 181 billable days, £250 a day is £45,250 a year, which leaves £25,653 in your pocket after costs, tax and NI. Put your own costs in the calculator and use "Check a rate" to see yours.
Against Checkatrade's published figures (April 2026), £250 is below the range for a plumber and in the middle of the range for a tiler.
Day rate or hourly rate?
A day rate suits jobs that fill the day; an hourly rate suits call-outs and small jobs. The calculator gives both from the same figures, at the hours you say a billable day has. For short visits, a minimum charge makes sure travel and parking are covered.
Day rate and materials
A day rate is labour only. Price materials separately, with a markup for buying, collecting and storing them: see the markup and margin calculator. Your day rate and materials then go on the quote, and the hours you actually worked on the job sheet.
Day rate and CIS
If you work for a contractor under CIS, 20% of the labour is deducted before you are paid (30% if you are not registered), and it counts towards your tax bill at the year end. See the CIS tax calculator. The tax this rate has to cover comes from the same engine as the self-employed tax calculator.
What is a day rate worth?
The second tab works the other way: enter a day rate, the days a week and the weeks a year, and it shows what is left as a sole trader after your costs, tax and National Insurance. Working inside IR35 through an umbrella company is taxed differently, so use an umbrella take-home calculator for that.
Frequently asked questions
How do I calculate my day rate?
Take-home + tax and NI + business costs, divided by the days you can bill. £35,000 take-home with £15,000 of costs over 181 days is £320 a day.
How can I calculate my day rate based on my salary?
Put the take-home pay from that salary in as your target. The calculator adds the tax and NI you would pay as a sole trader and your business costs, then divides by the days you can bill, not by 260 or 220.
How do I calculate my daily rate?
The same way as a day rate: everything the year has to pay for, divided by the days you will really be paid for.
Is 250 a good day rate?
With example costs of £15,000 and 181 billable days, £250 a day leaves about £25,653 after tax and NI. Whether that is enough depends on your costs.
How much should I charge for day rate?
Enough to cover your pay, the tax and NI on it, and your costs, over the days you can bill. The calculator works it out from your own figures.
How much is 400 a day inside IR35?
That depends on the umbrella company's charges and your tax code, so use an umbrella take-home calculator. As a sole trader outside IR35, use the second tab here.
How many working days are there in 2026?
261 weekdays, less 8 bank holidays in England and Wales, is 253. Scotland and Northern Ireland have 10 bank holidays in 2026.
Should I charge for travel?
Either charge it, or build it into your rate. The calculator's unpaid time allows for it: the more time you spend driving, the higher that percentage should be.
What day rate do I need to earn £40,000?
With the example costs and 181 billable days, about £357 a day, or £45 an hour, for £40,000 in your pocket.
Do I add VAT to my day rate?
Only if you are VAT registered. Then you quote your rate plus VAT. If you are not, you charge no VAT, but the VAT you pay on materials and costs is a cost to you.
Sources
- Checkatrade: how much do tradespeople cost? (published April 2026, read 19 September 2026) (opens in a new tab)
- GOV.UK: UK bank holidays (opens in a new tab)
- GOV.UK: income tax rates and allowances (opens in a new tab)
- GOV.UK: National Insurance rates for the self-employed (opens in a new tab)
An estimate for a sole trader. Your accountant knows your real costs and tax.
By Janusz Wozniak, Founder & Lead Developer
Built because the day rate calculators online are for IT contractors. This one starts from a tradesperson's van, tools and weather days.
Last updated .
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