Contractor Hourly Rate Calculator
Stop guessing what to charge. Enter your costs and this calculator tells you the minimum hourly rate you need to cover expenses, pay yourself, and make a profit.
What you want to take home before taxes
Truck, insurance, tools, software, marketing, office costs
Hours you actually bill customers (typically 1,200-1,500)
Your Results
At $111/hr with 1300 billable hours per year, your annual revenue would be $144,000 — covering your $80,000 salary, $40,000 overhead, and generating $24,000 in profit.
Frequently Asked Questions
How do I calculate my contractor hourly rate?
Add your desired annual salary plus all business overhead (truck, insurance, tools, software, marketing, office). Divide by your annual billable hours (typically 1,200-1,500 for field service). Add your target profit margin (15-25%). Example: ($80,000 salary + $40,000 overhead) / 1,300 hours = $92/hr base. With 20% margin: $110/hr.
What is a good hourly rate for a contractor?
Licensed contractors in the US typically charge $75-$200/hour in 2025. Plumbers: $95-$175/hr. Electricians: $80-$150/hr. HVAC techs: $85-$165/hr. General contractors: $50-$120/hr. Your rate depends on location, specialization, experience, and overhead costs. Use this calculator to find your specific breakeven rate.
How many billable hours does a contractor work per year?
Most contractors bill 1,200-1,500 hours per year out of 2,080 total work hours. The rest goes to drive time between jobs (15-20%), estimates and quoting (10%), admin and paperwork (10%), callbacks and warranty work (5%), and training/meetings. Track your actual billable hours for 2-4 weeks to get an accurate number for your business.
Should I charge more for emergency or after-hours work?
Yes. Industry standard is 1.5x to 2x your normal rate for emergency, after-hours, weekend, and holiday calls. If your standard rate is $100/hr, charge $150-$200/hr for emergencies. Many contractors also add a minimum service fee ($150-$300) for after-hours calls regardless of job duration.
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