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
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.