Free tool
Hourly Rate Calculator for Contractors
The rate you can charge — with realistic billable hours, overhead, and profit baked in.
Your business
Most trades bill 1,200-1,600 hours/year, not 2,080. Time is lost to travel, quoting, admin, and downtime.
Your rate
$124/hr
Minimum to hit your targets
Salary + overhead$145,000
+ 20% profit$174,000
÷ 1,400 billable hrs$124/hr
Why "just charge $75/hr" is wrong
$75/hr sounds high until you subtract: 25% payroll tax, insurance, vehicle costs, tools, phone, software, office, and the 40% of hours you can't bill. Suddenly you're at $22/hr take-home — less than your techs.
What overhead should I include?+
Rent, insurance, vehicle (payment/fuel/maintenance), phone, software, tools, admin salary, marketing, and 15% for the stuff you forgot.
Should I quote a flat rate instead?+
Yes — most customers prefer it and it protects you from slow jobs. But you still need this number to price the flat rate.