Hourly Rate Calculator for service owners or workers
The difference between a "job" and a "business" is knowing your numbers. Stop guessing and start pricing for real profit.
Understanding Labor Burden
A technician's "cost" is much more than their hourly wage. When you add taxes, insurance, and benefits, your total labor cost is typically 20% higher than just the salary total.
The Efficiency Trap for Contractors
A technician billing 8 hours is impossible. Travel, setup, and supply runs take up to 40% of the day. You MUST bill more for the hours you actually work to stay profitable.
Calculate Your Break-Even Rate
If your current rate is below break-even, you are either working massive overtime to make ends meet, or you're earning less than a standard employee wage. Charge what you are worth.
Markup vs. Margin
A 20% markup is NOT a 20% margin. To get a 20% profit margin, you need to divide your cost by 0.8 (a 25% markup). Miscalculating this is the #1 reason trades businesses fail.
Target Billable Rate
The minimum amount your business should charge customers per hour to cover all costs and reach your profit goal.
Includes 20% Profit Margin
Status
Currently making $34.09 profit/hr
Math Story (Per Hour)
Break-Even Rate
$90.91
Zero-profit floor
Total Annual Cost
$96,000
Pay + Burden + Expenses
Stop Losing Money
Put these rates into action instantly.
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