Electrician Day Rate Guide: How to Price So You Actually Profit
How to work out a day rate that covers your real costs and leaves a profit — a plain guide for self-employed UK electricians, with the costs most people forget to include.
Most electricians who struggle aren't short of work — they're underpricing it. A day rate isn't "what the customer will accept"; it's the number that keeps your business alive after every real cost is covered. Here's how to build one from the ground up.
Start from what you need to earn
Work backwards. Decide the annual income you need, then divide by your billable days — not 365, and not even 260 weekdays. After holidays, sickness, quoting, travel, admin and quiet spells, a realistic figure is often 200 or fewer billable days a year. That single adjustment is why so many day rates are too low.
Add the costs people forget
- Van: finance or depreciation, fuel, insurance, servicing, tax
- Tools and test equipment, plus calibration
- Public liability insurance and professional indemnity
- Competent-person scheme fees (NICEIC/NAPIT) and assessments
- Phone, software, accountant, bank charges
- Pension, and a buffer for tax and quiet months
- Unbillable time: quoting, chasing payments, buying materials
Total those, add the income you want, divide by realistic billable days, and you have a day rate that actually sustains the business.
Materials and markup
Your day rate covers labour. Materials are separate — buy well and apply a fair markup for sourcing, handling and warranty. A markup isn't greed; it covers the time and risk of supplying the right parts. Always quote materials as their own line so the customer sees the split, as covered in how to write a quote that wins.
Try the free CIS calculator to see what you take home after CIS and VAT.
Try the free CIS calculator →Don't forget CIS and VAT
If you subcontract, the contractor may deduct CIS from your labour before paying you — so your day rate needs to survive a 20% deduction on cash flow (you reclaim it later). And once you cross the VAT threshold, VAT changes your pricing conversation. See CIS deductions and VAT for electricians.
Price with confidence
- Don't apologise for your price — a suspiciously low quote reads as a warning sign
- Charge for call-outs and emergency work at a premium
- Review your rate at least yearly against rising costs
- Quote fixed prices where you can see the scope; estimate where you can't
Quote confidently and get paid faster — SparkQuote does the VAT and CIS for you.
Start free →FAQs
How do I work out my electrician day rate?
Start from the annual income you need, add every business cost (van, tools, insurance, scheme fees, software, pension, tax buffer, unbillable time), then divide by your realistic billable days — often 200 or fewer a year, not 260. That gives a rate that actually covers your costs.
How many billable days should I assume?
Far fewer than the calendar suggests. After holidays, illness, quoting, travel, admin and quiet periods, many self-employed electricians realistically bill around 200 days a year or fewer. Using 260 weekdays will leave your rate too low.
Should I mark up materials?
Yes. Your day rate covers labour; materials are separate. A fair markup covers the time, risk and warranty of sourcing and supplying the right parts. Always show materials as their own line on the quote and invoice.
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