Hourly Rate Calculator
A good hourly rate must pay more than your wage. It also has to recover the van, insurance, tools, admin, holidays and the hours you spend quoting rather than billing. This guide shows how to turn those real business costs into a sustainable customer rate.
Key pricing factors
Target Take-home Pay
Start with the wage the working tradesperson needs before tax. Treat this as a cost of doing the job, not as business profit.
Billable Hours
A 40-hour week rarely means 40 chargeable hours. Travel, quotes, ordering and paperwork reduce the hours customers can be billed for.
Hourly Overhead
Divide annual van, insurance, tools, phone, accountancy and marketing costs by realistic annual billable hours.
Profit Allowance
Add profit after wages and overheads so the business can replace equipment, survive quiet periods and grow.
Example: Sustainable Trade Hourly Rate
- Target wage per billable hour
- £24.00
- Business overhead per hour
- £9.00
- True hourly cost
- £33.00
- Profit allowance
- £7.00
- Customer hourly rate
- £40.00
Charging £24 would only fund the wage. A £40 customer rate also contributes to overheads and leaves the business with a modest profit.
Practical quoting guidance
- Use realistic billable hours rather than every hour you work. Many sole traders bill only 25 to 30 hours in a busy week.
- Set a minimum call-out charge so short jobs cover travel, setup and the gap they create in your diary.
- Review your hourly rate whenever insurance, fuel, finance or supplier costs rise.
Frequently asked questions
What hourly rate should a UK tradesperson charge?
There is no single correct figure. Your location, trade, qualifications, overheads and billable hours all matter. Calculate your own floor rate before comparing local competitors.
Should travel time be included in my hourly rate?
Local travel can be recovered through the rate or a call-out fee. Longer journeys should usually be charged separately so nearby customers do not subsidise distant work.
Is an hourly rate the same as my wage?
No. The customer rate must cover your wage, business overheads, non-billable time and profit. Treating the whole rate as pay leads to underpricing.