Day Rate Calculator
Day rates are simple for customers to understand, but only work when the figure covers the full cost of keeping the business running. A sustainable rate includes the working wage, a daily share of overheads and profit—not just what you want to take home that evening.
Key pricing factors
Working Day Length
Define what the rate includes, such as eight hours on site, and explain how additional hours or evening work will be charged.
Daily Overheads
Spread annual costs over realistic working days. Use fewer than 260 days to allow for holidays, sickness, training and quiet periods.
Travel & Setup
Decide whether normal local travel and loading time sit inside the day rate or appear as separate charges.
Business Profit
Add profit above the working wage and overhead contribution. Without it, the rate only keeps the business standing still.
Example: Sole Trader Day Rate
- Working wage for the day
- £220.00
- Daily overhead contribution
- £45.00
- True daily cost
- £265.00
- Business profit
- £55.00
- Customer day rate
- £320.00
The £320 rate pays a £220 working wage while recovering £45 of overhead and retaining £55 for profit and resilience.
Practical quoting guidance
- State the hours covered by your day rate and what happens if the customer delays access or changes the scope.
- Charge materials, parking, specialist hire and waste separately unless the written quote clearly includes them.
- Use a half-day minimum when a small job prevents you booking another customer that day.
Frequently asked questions
How many working days should I use to calculate a day rate?
A sole trader may work around 220 days after weekends, holidays, sickness, training and admin. Use your own records and avoid assuming every weekday is billable.
Does a day rate include materials?
Usually not. A labour day rate should be clearly labelled, with materials and other direct job costs shown separately.
When is fixed-price work better than a day rate?
A fixed quote is often better when the scope and duration are predictable. It gives the customer certainty and rewards you for completing efficient work.