How do I work out my day rate as a sole trader tradesman?

Add the profit you want to make in a year to your annual business costs, then divide by the number of days you expect to bill. That profit is before personal tax - income tax and National Insurance (UK) or USC and PRSI (Ireland) still come out of it. Allow for holidays, sick days and time spent quoting and on admin. A typical sole trader bills around 220 days a year.

Should I include VAT in my day rate?

Your day rate should always be quoted excluding VAT. If you are VAT-registered, you add VAT on top when you invoice. If you are not VAT-registered (below the threshold), you charge no VAT and your day rate is the final price.

How many billable days does a sole trader tradesman work per year?

Most sole trader tradesmen work around 220 to 240 billable days per year. Allow for 4 to 6 weeks holiday, sick days, training, and non-billable time spent quoting, doing admin, and travelling. Overestimating billable days is one of the most common mistakes in setting a day rate.

What is a typical day rate for a plumber in Ireland?

Day rates for plumbers in Ireland typically range from €250 to €450 per day, depending on experience, specialisation, and location. Dublin and other cities command higher rates. Always quote ex-VAT and add 13.5% on top if you are VAT-registered.

What is a typical day rate for a builder in the UK?

Day rates for builders in the UK typically range from £200 to £400 per day, with experienced specialist builders in London and the South East charging £350 to £500 or more. General labourers typically earn £100 to £180 per day. Always quote ex-VAT if you are VAT-registered and add 20% on top.

What is a typical day rate for a plumber in the UK?

Day rates for plumbers in the UK typically range from £220 to £400 per day, depending on experience and location. Gas Safe registered plumbers and those who work on commercial jobs can charge at the higher end. Add 20% VAT on top if you are VAT-registered.

What is a typical day rate for an electrician in the UK?

Day rates for electricians in the UK typically range from £200 to £380 per day, with specialist electricians working on commercial or industrial sites commanding higher rates. EV charger installers and solar PV installers can charge a premium. Always quote ex-VAT and add 20% for VAT-registered work.

Free tool

Work out your minimum day rate.

Enter the profit you need, your business costs and working days. Get your minimum day rate, half-day rate and hourly rate. Free.

Currency

Target profit before tax (€/year)

What you want left after business costs, before income tax and USC/PRSI

Annual business costs (€)

Van, insurance, tools, phone, accountant - costs you do not charge back to customers

Working weeks per year

44 weeks accounts for holidays and sick days

Billable days per week

Not every day is billable - allow for quoting, admin, travel

Why it matters

Most tradesmen undercharge. Here is why.

01

They forget non-billable time

Quoting, admin, driving to jobs, chasing payments. None of this earns money. A tradesman working 5 days a week might only be billing for 4. Your day rate must cover this gap.

02

They ignore annual expenses

Van finance, insurance, tools, PPE, phone, accounting fees. These add up fast - often €5,000 to €15,000 per year. Your day rate needs to cover these before you take home anything.

03

They forget tax

Income tax and USC/PRSI (Ireland) or National Insurance (UK) come out of your profit. This calculator works to profit before tax - run the result through the self-employed tax calculator to see what you would actually take home, and raise your target if it falls short.

04

They compare to employees

A day rate of €350 sounds like €91,000 per year. But with holidays, sick days, non-billable time, and expenses, you might be taking home far less than an employed tradesman on €55,000.

Common questions