Contractor Hourly Rate Calculator
Find your true hourly rate by including salary, overhead, and profit target. Stop undercharging.
Hourly Rate Questions Answered
How many billable hours should I use?
Most solo contractors bill 1,200-1,600 hours per year. That accounts for weekends off, holidays, rain days, sick days, time spent estimating, driving, and doing admin work. Don't use 2,080 (40 hrs × 52 weeks) — you're not billing every hour you work.
What overhead costs should I include?
Include: liability insurance, workers comp, vehicle payment + fuel + maintenance, tools and equipment, licensing fees, phone bill, software subscriptions, office/storage rent, accounting, marketing, and your own health insurance if self-employed.
How do I know if my hourly rate is competitive?
Research rates in your area and trade. A handyman might charge $50-75/hr while an electrician charges $85-150/hr. Your rate should cover ALL costs plus profit. If you're cheaper than everyone else, you're probably not covering your true costs.
Should I charge the same rate for every job?
Your base rate should cover costs + profit on every job. But you can charge more for specialty work, emergency calls, or jobs with difficult access. The key is knowing your minimum rate so you never go below it.