Guides › How to Price a Job as a Tradesperson (Free Calculator, UK) · Updated 26-10-2026
How to price a job as a tradesperson: a simple method that protects your profit
Most underpricing comes from two mistakes: using your hourly wage instead of your real hourly cost, and confusing markup with margin. Fix those and your quotes start paying.
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Step 1: Materials, with waste
List the materials and add a waste or contingency allowance. It covers offcuts, breakages and the extra fittings you always need.
Step 2: Labour at your real hourly cost
Your hourly cost is not what you would like to earn per hour. Take what you want to earn in a year, add the costs of running the business, and divide by the hours you can actually bill, not the hours you work. Travel, quoting, buying materials and paperwork are hours you don’t bill.
Step 3: Overheads
Van, fuel, insurance, tools, phone, accounting and registrations. Either add them into your hourly cost or add an overhead percentage to each job, but never leave them out.
Step 4: Margin, not markup
If your costs are £1,000 and you add a 25% markup, you charge £1,250 and your margin is 20% (£250 ÷ £1,250). If you want a 25% margin, divide your costs by 0.75: £1,333. Decide which one you mean and use it every time.
Step 5: VAT and rounding
If you are VAT registered, add 20% on top and show it. Round to a sensible price, and keep a minimum charge for small jobs so they still cover your travel.
Do it in a calculator, not your head
Our free Job Price Calculator does these five steps for one job, with no sign-up. If you want the estimate, the invoice and the actual profit on every job in the same file, that is what the Trades Business Kit adds.
FAQ
What margin should a tradesperson aim for?
It depends on your trade, area and how much risk the job carries. The important thing is to set a target on purpose and check every quote against it, instead of finding out at the end of the year.
Is the calculator really free?
Yes. Download it from the free calculator page, no email or account needed.
Does it work for day rates?
Yes. Enter people × days × hours per day, or put your day rate in as hours × rate.