What should I charge? Hourly rate calculator
Stop guessing your worth. Use this tool to calculate the precise hourly rate you need to cover your overhead, taxes, and personal income goals.
What should I charge per hour?
Work backward from the take-home pay you actually need.
Business costs = vehicle, fuel, tools, insurance, phone, software, materials you don't re-bill.
Enter the hours you expect to bill each week. Account for time spent on tasks you do not bill, such as administration or preparing quotes.
The billable hour gap
The biggest mistake solo tradespeople make is dividing their target salary by every hour they spend 'on the clock.' Between driving to jobsites, quoting, and administrative tasks, your actual billable hours are significantly lower than your total working hours. This calculator accounts for that discrepancy so you don't undercharge.
Accounting for overhead and taxes
A profitable rate must cover more than just your time. You need to account for business expenses like tools, insurance, and vehicle maintenance, as well as the tax set-aside required at the end of the year. If these aren't built into your rate, you are effectively paying to work.
Estimate your hourly rate
By inputting your specific overhead and estimated billable hours per week, you get a mathematically sound rate. This ensures that once the dust settles at tax time, your actual take-home pay matches your original financial goal.
FAQ
Why shouldn't I just divide my target salary by 40 hours?
Because you aren't billing for every hour you work. Driving and admin time are necessary but unbilled; your rate must be high enough to cover those 'lost' hours.
What should I include in 'business costs'?
Include everything required to run your trade, such as tool replacements, fuel, insurance, software, and vehicle upkeep.
Does this help with my tax preparation?
While it helps you set aside the correct amount within your rate, it is a pricing tool, not a tax or accounting service.
Related
- TradesTimer for electricians
- TradesTimer for handymen
- TradesTimer for painters
- What hourly rate should I charge as a solo tradesperson?
- How many billable hours are there really in a work year?
Last updated 2026-06-08. Estimates only — not tax or accounting advice.
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