Your numbers
After tax and NI. What you want to actually take home.
Van, fuel, tools, insurance, phone, software, etc.
VAT registered?
Shows rates inc. VAT (20%)
Your minimum hourly rate
Enter your numbers and calculate
Direct answer
How do you calculate a tradesman hourly rate?
Direct answer: Calculate a tradesman hourly rate by adding target take-home income to annual business overheads, then dividing by realistic billable hours after holidays, admin, quoting and travel. The result is a break-even rate; add profit margin and VAT where relevant before using it in a customer quote.
How to calculate your hourly rate as a tradesman
Most tradesmen undercharge because they price on gut feel rather than actual numbers. The formula is simple: add your target take-home income to your annual business costs, then divide by the number of hours you can realistically bill in a year.
The hidden trap is non-billable time. A typical tradesman spends 15-25% of their working hours on quoting, admin, travelling between jobs, and chasing payments. That time still costs you money, it just doesn't earn you any. Your hourly rate has to cover it.
Once you know your minimum rate, add a profit margin (10-20% is typical) so you have money to reinvest and weather quiet periods. That's your charge-out rate.
With your rate set, run the whole quote past the trade pricing benchmark to check materials, waste, access, VAT and margin before it goes to the customer.