Free Charge-Out Rate Calculator
Work out your ideal hourly or daily charge-out rate based on your target income, working hours, and business costs.
Charge-Out Rate Calculator results
Fill in the details and select Calculate to see your figures.
This charge-out rate calculator helps electricians set the right hourly and daily rates. Enter your target annual income, expected billable hours, and business costs to calculate the minimum rate you need to charge. Compare your rate against UK averages to ensure you are competitive.
How to use the Charge-Out Rate Calculator
- Enter your target annual income. The amount you want to earn before personal tax.
- Add your annual business costs: van, insurance, tools, training, and accountancy fees.
- Set your billable hours per week. Be realistic. Not all your time is chargeable (quoting, travel, admin).
- Adjust working weeks per year to account for holidays and downtime.
- Your hourly and daily rates are calculated automatically. Add VAT on top if you are registered.
How the Charge-Out Rate Calculator works
Your charge-out rate has to cover what you want to earn plus every cost of running the business, spread across the hours you can actually bill.
- Target income: £45,000. Annual business costs: £15,000. Total to recover: £60,000.
- Billable hours: 30/week × 46 working weeks = 1,380 chargeable hours a year.
- £60,000 ÷ 1,380 = ~£43.50/hour, or about £350 for an 8-hour day.
- If you are VAT registered, add 20% on top for the customer's price.
Most trades over-estimate billable hours: quoting, travel, and admin eat 25–40% of the week. Lower the billable hours and your true rate rises fast.
Typical UK benchmarks
- UK Average Electrician Rate
- £45-£60/hr, average £50 (Checkatrade Electrician Hourly Rate cost guide, 2026)
- London Premium
- London electricians usually charge £50-£60/hr against the £45-£60 national range (Checkatrade Electrician Hourly Rate cost guide, 2026)
See it in your business.
Frequently asked questions
What is a typical electrician charge-out rate in the UK?
According to Checkatrade's 2026 cost guide, most electricians charge between £45 and £60 per hour, averaging £50. In London, Checkatrade puts the usual range at £50-£60 per hour, rising to around £100 for emergency, evening and weekend call-outs. Specialist work like EV charger installation or commercial fit-outs commands more on top.
How many hours should I assume are billable?
Most electricians bill 25-35 hours per week. The rest is spent quoting, travelling, buying materials, doing admin, and marketing. Be conservative: overestimating billable hours leads to undercharging.
Should I charge hourly or daily?
For small jobs (under 4 hours), hourly is standard. For larger projects, a day rate is often better: it simplifies quoting and avoids disputes about breaks and non-productive time. Many electricians offer both.
Do I add VAT on top of my charge-out rate?
Only if you are VAT registered. VAT registration is mandatory once your taxable turnover passes £90,000 (HMRC threshold, unchanged since 1 April 2024 and confirmed for 2026/27). If registered, you add 20% VAT on top of your rate. So a £45/hour rate is billed at £54/hour. This calculator works in ex-VAT rates, which is the figure you should base your pricing on.
Why is my calculated rate higher than what competitors seem to charge?
Because most tradespeople quietly undercharge: they price against the visible day rate of an employee, forgetting that a self-employed rate must also cover holidays, sick days, pension, tools, van, insurance, admin time, and profit. A rate that only matches an employee's day rate leaves you earning less than an employee once costs come out. The calculator surfaces the true number.
