Free tool
Hourly rate calculator for tradespeople
Find the hourly rate that covers wages, holiday pay, pension and ATP, your fixed costs and the profit you want. Enter your own figures - the calculator shows every step, so you can see where the money goes. Rates are set up for Denmark.
Wages
E.g. 37 hours × 46 weeks = 1,702.
E.g. 12.5% holiday allowance for hourly paid staff (Danish Holiday Act).
See your collective agreement or contract.
ATP (employer share DKK 2,376 a year for full time in 2026), work injury insurance, maternity and absence contributions etc.
The percentages are pre-filled as an example. Adjust them to your agreement.
Hours and costs
Hours you can charge to a customer.
Van, tools, insurance, office, software.
Your hourly rate
- Wages (1,702 h × DKK 200.00)
- DKK 340,400.00
- Holiday pay (12.5%)
- DKK 42,550.00
- Pension (8%)
- DKK 27,232.00
- ATP and other payroll costs
- DKK 10,000.00
- Payroll cost per year
- DKK 420,182.00
- Fixed costs
- DKK 120,000.00
- Target profit
- DKK 100,000.00
- To cover per year
- DKK 640,182.00
- Cost per billable hour (without profit)
- DKK 385.84
- Hourly rate excl. VAT
- DKK 457.27
- Hourly rate incl. 25% VAT
- DKK 571.59
All amounts are excl. VAT unless stated otherwise. The calculation runs in your browser - nothing is sent or stored.
The formula
Payroll cost = hourly wage × paid hours × (1 + holiday pay % + pension %) + ATP and other
To cover = payroll cost + fixed costs + profit
Hourly rate = to cover / billable hours
Holiday pay and pension are calculated on the wages for the paid hours. How they apply to you depends on your agreement and type of employment - adjust the percentages to your own. Use the rate in the quote price calculator.
Read also: hourly rate or fixed price · what a tradesperson's hour costs.
Worked example
A journeyman earns DKK 200 an hour and is paid for 1,702 hours a year. 12.5% holiday pay, 8% pension and DKK 10,000 in ATP and other payroll costs. He can bill 1,400 hours. The business has DKK 120,000 in fixed costs and wants DKK 100,000 in profit.
Wages = 200 × 1,702 = DKK 340,400
+ holiday pay 42,550 + pension 27,232 + ATP etc. 10,000
= payroll cost DKK 420,182
420,182 + 120,000 + 100,000 = DKK 640,182
640,182 / 1,400 = DKK 457.27 per hour
The hourly rate is DKK 457.27 excl. VAT (DKK 571.59 incl. VAT). Below DKK 385.84 per hour, the hours do not even cover the costs.
Build the whole quote with your own prices
The calculator works out one number. Calco works out the whole quote: materials from your wholesaler's price file, your hourly rates and your markup, VAT and total - ready to send with a link the customer can accept online.