Hourly Rate Calculator
Calculate what you need to charge per hour to cover expenses, pay yourself, and turn a profit. Stop guessing and start pricing with confidence.
Target Annual Income
Business Expenses
Fixed Monthly Costs
Monthly Fixed: $1,450 | Annual: $17,400
Variable Annual Costs
Annual Variable: $12,900
Total Annual Expenses: $30,300
Taxes
Self-Employment Tax (15.3%)
$11,475
Calculated automatically on salary
= $15,000 on your salary
Total Tax Allowance: $26,475
Billable Hours
Non-Billable Hours Per Week
Non-Billable/Week
15 hrs
Billable/Week
30 hrs
Billable/Year
1,500 hrs
Utilization
67%
Profit Margin
10-20% is typical. Higher for specialized work.
Your Minimum Hourly Rate
Charge at least
$101/hr
To earn $75,000/year with 15% profit
Breakdown
| Target Salary | $75,000 |
| + Fixed Expenses (annual) | $17,400 |
| + Variable Expenses (annual) | $12,900 |
| + Self-Employment Tax (15.3%) | $11,475 |
| + Income Tax (20%) | $15,000 |
| = Required Revenue | $131,775 |
| + Profit Margin (15%) | $19,766 |
| = Target Revenue | $151,541 |
| ÷ Billable Hours/Year | 1,500 hrs |
| = Minimum Hourly Rate | $101.03/hr |
What-If Scenarios
Revenue Targets
Annual
$152k
Monthly
$12,628
Weekly
$3,031
Daily
$606
Jobs Needed Per Month
| Avg Job Value | Jobs/Month | Jobs/Week |
|---|---|---|
| $250 | 50.5 | 11.7 |
| $500 | 25.3 | 5.8 |
| $1,000 | 12.6 | 2.9 |
| $2,500 | 5.1 | 1.2 |
| $5,000 | 2.5 | 0.6 |
Understanding Your Rate
Why Your Rate Might Seem High
- You're not billing 40 hrs/week. Travel, quotes, and admin eat into billable time.
- Employees have hidden benefits. Employer pays half of payroll taxes, provides insurance, PTO, retirement.
- You need profit, not just salary. A job should pay you AND grow your business.
- Overhead is real. Trucks, tools, insurance, marketing - it all adds up.
- Slow periods happen. You need reserves for winter, recessions, and illness.
Why You Shouldn't Lower Your Rate
- Cheap attracts cheap. Low-price shoppers demand more and complain more.
- Racing to the bottom kills businesses. If you can't cover costs, you'll fail eventually.
- Quality costs money. Better materials, better training, better service.
- Your expertise has value. Years of experience solve problems fast.
- Raising rates is hard. Start right; existing customers resist increases.
Adjusting for Different Job Types
Your base rate covers standard work. Adjust for complexity, timing, and conditions:
| Job Type | Premium | Notes |
|---|---|---|
| Standard residential | Base | Base rate |
| After-hours/Weekend | +25% | +25% minimum |
| Emergency calls | +50% | +50% or flat fee |
| Commercial/Industrial | +20% | +15-25% |
| Specialty/Complex work | +30% | +20-40% |
| Travel over 30 min | +15% | Add travel time charge |
Ready to Fill Your Schedule?
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