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Day Rate Calculator for Trades & Subbies

Work out the day rate you need to hit the take-home pay you want — or see what your current rate really leaves you after costs, tax, National Insurance and CIS.

Private by designEverything runs in your browser.
Real working daysAllows for holidays, bank holidays and rained-off days.
Working shownEvery figure in your estimate is broken down.
Example figures — replace with your own. Example figures are filled in so you can see how it works — replace them with your own before relying on the result shown.

1. What do you want to know?

Pick one. Uses 2026/27 tax rates.

Calculation type
Scotland has its own Income Tax bands; NI is the same UK-wide.

2. Your pay

What you want to end up with in your pocket each year.

After tax, National Insurance, business costs and any pension you pay below.
Enter 0 or more for your target pay.
Used for the hourly equivalent.
Enter between 1 and 24 hours.

3. Days you’ll actually get paid for

Self-employed means no holiday or sick pay, so only count the days you can bill.

Out of 52 weeks in the year.
Enter between 0 and 52 weeks.
Most subbies work 5.
Enter between 1 and 7 days.
8 a year in England & Wales, 10 in NI.
Enter 0 or more days.
Illness, weather, gaps between jobs.
Enter 0 or more days.
Billable days must be more than 0 (and no more than 366). Check your holidays and days off.

Worked out from your weeks above — you can type over it.

4. Yearly business costs

Optional. Allowable costs of running your business for a year — leave any you don’t have at 0.

Including repairs and replacements.
Public liability, tools, van business cover.
Training, cards, workwear, subscriptions.
Total business costs£6,500.00

5. Pension (optional)

No employer pays into a pension for you, so many subbies build this in.

What leaves your bank account. Your provider adds 25% basic-rate tax relief (you pay £80, your pot gets £100); higher-rate relief is included in the tax figure.
Enter 0 or more for your pension.

Show the maths

How we got your figure

Every step uses the figures you entered above and the 2026/27 rates shown in your result.

The step-by-step working will appear here.

Guide

How to set your day rate as a subbie

Your day rate isn’t your wage. It has to pay for the days you can’t work, keep the van on the road, cover your tax bill and still leave you the money you need. Work it out in five steps:

  1. Decide your take-home pay. The money you want in your pocket for the year, after everything else.
  2. Count your billable days. A year has about 260 weekdays. Take off holidays, bank holidays and the days lost to weather, illness and gaps between jobs — most subbies are left with roughly 210 to 225.
  3. Add up your yearly costs. Van, fuel, tools, insurance, phone, accountant: everything it costs to turn up and do the job.
  4. Add tax and National Insurance. Income Tax and Class 4 NI are worked out on your profit (turnover minus costs), not on your day rate.
  5. Divide by your billable days. That’s the least you should charge. Then compare it with going rates for your trade and area.

There’s a longer walk-through with worked examples in our guide to working out your day rate.

Things people forget

Holidays and bank holidaysNobody pays you for them. Four weeks off plus 8 bank holidays is 28 days without income.
Rained-off and quiet daysBad weather, waiting for materials and gaps between jobs all cost you a day’s pay.
The vanFinance or lease, insurance, servicing, tyres and fuel add up to thousands a year.
The tax billIncome Tax and Class 4 NI come out of your profit. Under CIS some is taken up front, but you may still owe more — or be due a refund.
Sick days and pensionNo sick pay and no employer pension, so your rate needs to cover both.
Unpaid timeQuoting, travelling, invoicing and picking up materials all take time you can’t bill.

Frequently asked questions

How do I work out my day rate as a subcontractor?

Start with the yearly take-home pay you want, add your yearly business costs, then add the Income Tax and Class 4 National Insurance due on your profit. That gives the turnover you need. Divide it by the days you will actually be paid for, not the 260 weekdays in a year, and you have your minimum day rate.

How many days a year does a self-employed tradesperson actually work?

There are about 260 weekdays in a year. Take off 4 weeks’ holiday (20 days), 8 bank holidays and around 10 days lost to illness, bad weather or gaps between jobs, and you are left with about 222 billable days. Your own figure may be higher or lower, so change it in the calculator.

Does CIS come off my day rate?

If you are registered for CIS, the contractor takes 20% off the labour part of each payment; if you are not registered it is 30%, and with gross payment status nothing is taken. CIS is not an extra tax: it is an advance payment towards your Income Tax and National Insurance. At year end your Self Assessment sets it against your bill, and if too much was taken you get a refund.

Is my day rate the same as what I take home?

No. Your day rate has to cover your van, fuel, tools, insurance and other running costs, plus Income Tax and Class 4 National Insurance, before anything is left for you. Use the “What will my day rate earn me?” option to see the take-home pay from any rate.

Should I charge VAT on my day rate?

Only if you are VAT registered. You must register if your VAT-taxable turnover goes over £90,000 in a rolling 12 months. Many construction jobs between VAT-registered businesses use the domestic reverse charge. This calculator leaves VAT out, so treat the day rate as your rate before any VAT.

Does this work if I live in Scotland?

Yes. Choose Scotland and the calculator uses the 2026/27 Scottish Income Tax bands. Class 4 National Insurance is the same across the UK. If you also pay into a pension, extra relief above the basic rate is handled in a simplified way, so treat that part as a guide.

CalculatorTax Set-Aside CalculatorHow much to put aside from each invoice, week or month for Income Tax and Class 4 NI, after any CIS.CalculatorCIS Tax & Refund CalculatorCheck the CIS that should have been taken, spot deductions on materials, and estimate your refund or bill.CalculatorVAT Threshold TrackerTrack your rolling 12-month turnover against £90,000 and see when you would have to register.GuideHow to work out your day rateTurn the take-home pay you want into a day rate that covers costs, tax and the days you can't work.GuideHow much tax to put asideReal percentages at different profits, with and without CIS, and how to build a tax pot.

Sources and review

Last reviewed: 21 October 2026. The rates and rules on this page were checked against GOV.UK guidance on that date by the HandySums team. We re-check every April, after each Budget and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.

Estimate only — not tax advice. This calculator uses simplified 2026/27 UK rates (England, Wales, Northern Ireland and Scotland) and assumes you are a sole trader, your day rate is all labour, your costs are allowable business expenses and you have no other income. It does not cover VAT, student loans, limited companies, capital allowances, payments on account, voluntary Class 2 contributions or pension allowance limits. Your actual bill depends on your full Self Assessment. Verify with HMRC or a qualified accountant. The figures you enter stay in your browser and are not stored.