Hourly rate calculator

Calculate the hourly rate UK tradespeople and small business owners need to charge to hit a target take-home income, accounting for holidays, sick days, and unbillable hours.

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Target annual take-home (after tax)

Business overhead per year

Fuel, insurance, phone, tools, software, etc.

Tax and NI rate (%)

Rough estimate: 25-30% for sole traders.

Days worked per year

~230 after weekends, holidays, and sick days.

Billable hours per day

Travel, quoting, and admin aren't billable. ~5-6 realistic.

Profit margin on top (%)

You should charge

£/hour

Or around £ for a full day.

Turnover needed: £/year. Gross income: £.

How this calculator works

Most tradespeople underprice because they divide their target income by hours in a year. That ignores holidays, sick days, unbillable admin, tax, and overhead. This calculator accounts for all of it.

The maths: target take-home, grossed up for tax, plus overhead, plus a profit margin, divided by actual billable hours. What's left is the minimum you should charge per hour.