If you're charging £30/hour as a self-employed tradesperson, you're probably earning less than minimum wage after costs. The average UK tradesperson needs to charge £45-65/hour just to match a decent employed salary. This guide shows you exactly how to calculate your number.
Pricing is the single biggest factor in whether your trade business succeeds or fails. Get it wrong, and you'll work 60-hour weeks while barely breaking even. Get it right, and you'll earn well while working reasonable hours.
This isn't about ripping customers off — it's about understanding your true costs and charging fairly for skilled work.
Step 1: Calculate Your True Hourly Rate
Most tradespeople pick a number that "feels right" or copy what competitors charge. This is backwards. You need to start with what you need to earn, then work backwards to your hourly rate.
The Formula
Target Annual Income + Business Costs ÷ Billable Hours = Minimum Hourly Rate
Real Example: Solo Electrician
Target take-home pay: £45,000/year (equivalent to ~£55k employed with pension, holiday pay, etc.)
Annual business costs:
- Van (lease, fuel, insurance, maintenance): £8,000
- Tools and equipment: £2,000
- Insurance (public liability, professional): £1,500
- Accountant: £1,200
- Software (Tradify, Xero): £600
- Phone and internet: £600
- Training and certifications: £500
- Miscellaneous: £1,000
- Total costs: £15,400
Tax on £45,000 profit: ~£9,000 (Income Tax + NI)
Total needed: £45,000 + £15,400 + £9,000 = £69,400
Billable hours calculation:
- 52 weeks - 5 weeks holiday - 1 week sick = 46 working weeks
- 46 weeks × 5 days = 230 working days
- Realistically billable: 6 hours/day (rest is travel, quotes, admin)
- 230 × 6 = 1,380 billable hours/year
Minimum hourly rate: £69,400 ÷ 1,380 = £50.29/hour
That's your break-even rate. To actually grow your business and have a buffer, add 20%: £60/hour.
Step 2: Choose Your Pricing Method
Day Rate Pricing
Best for: Longer jobs, repeat customers, commercial work
Take your hourly rate × 8 hours. At £60/hour, that's £480/day. Round to £450 or £500 for simplicity.
Advantage: Simple, predictable for customer and you
Risk: If the job takes longer, you lose money
Fixed Price Quoting
Best for: Defined jobs where you know exactly what's involved
Estimate hours × hourly rate + materials + contingency (10-20%)
Advantage: Customers prefer knowing the total cost upfront
Risk: Underestimate and you're stuck with the price
Time and Materials
Best for: Repair work, diagnostic jobs, unknowns
Charge your hourly rate + materials at cost + markup (15-25%)
Advantage: You can't lose money on unexpected problems
Risk: Customers worry about open-ended costs
Hybrid Approach (Recommended)
For most tradespeople, a hybrid works best:
- Standard jobs: Fixed price (you know how long they take)
- Repairs/diagnostics: Callout fee + hourly rate
- Large projects: Detailed quote with contingency built in
Step 3: Handle Materials Correctly
Never supply materials at cost. Your time sourcing, collecting, storing, and being responsible for materials has value.
Standard Markup Guidelines
- Small items (fittings, fixings, consumables): 30-50% markup
- Medium items (taps, sockets, radiators): 20-30% markup
- Large items (boilers, cylinders, consumer units): 10-20% markup
Example: Bathroom Tap Replacement
- Tap cost to you: £85
- Your price to customer: £110 (29% markup)
- Labour: 1.5 hours × £60 = £90
- Total quote: £200
Never itemise your markup. Quote "materials" as a single line or include them in the total price. Customers don't need to know your trade prices.
Step 4: Price Common Jobs
Here are realistic 2026 prices for common jobs. Use these as a sanity check, not gospel — your area, overheads, and expertise may differ.
Plumbing
| Job | Time | Price Range |
|---|---|---|
| Fix leaking tap | 30-60 mins | £60-100 |
| Replace taps (supply + fit) | 1-2 hours | £150-250 |
| Unblock drain | 30-90 mins | £80-150 |
| Install washing machine | 1 hour | £60-100 |
| Fit new toilet | 2-3 hours | £200-350 |
| Boiler service | 1 hour | £80-120 |
| Boiler replacement | 1-2 days | £2,500-4,000 |
Electrical
| Job | Time | Price Range |
|---|---|---|
| Replace socket/switch | 30 mins | £50-80 |
| Install new socket | 1-2 hours | £100-180 |
| Replace light fitting | 30-60 mins | £50-100 |
| Install consumer unit | 1 day | £500-900 |
| Full rewire (3-bed) | 5-7 days | £3,500-5,500 |
| EICR test | 2-4 hours | £150-300 |
| EV charger install | 3-5 hours | £300-500 (ex charger) |
Step 5: Quote Like a Professional
Always Quote in Writing
Verbal quotes lead to disputes. Use a proper quoting app like Tradify or ServiceM8 to send professional PDFs within hours of visiting.
Be Specific About What's Included
Vague quotes cause problems. List exactly what you'll do, what materials are included, and what's NOT included.
Good quote description:
"Supply and fit new Worcester Bosch 4000 30kW combi boiler. Includes: removal of existing boiler, installation of new boiler in same location, system flush with MagnaCleanse, fitting of magnetic filter, gas and water connections, commissioning, and Gas Safe notification. 10-year parts and labour warranty via Worcester. Excludes: relocation of boiler, additional pipework, making good decorations, TRVs."
Include a Validity Period
Material prices change. Include "Quote valid for 30 days" to protect yourself.
Payment Terms
Be clear about when payment is due:
- Small jobs (under £500): Payment on completion
- Medium jobs (£500-2,000): 50% deposit, balance on completion
- Large jobs (over £2,000): 30% deposit, staged payments, 10% on completion
Step 6: Stop Undercharging
The Race to the Bottom
If you're always the cheapest quote, you're doing it wrong. You'll attract price-sensitive customers who haggle, complain, and leave bad reviews when anything goes wrong.
Value vs Price
Customers who understand value will pay more for:
- Turning up when you say you will
- Communicating clearly throughout
- Leaving the site clean
- Providing proper paperwork and guarantees
- Being available for follow-up questions
When to Walk Away
Some jobs aren't worth having. Walk away from:
- Customers who only care about price
- Jobs where the budget doesn't cover your costs
- Problem customers (you'll know them when you meet them)