Hourly Rate Calculator for the Trades
Undercharging is the fastest way to work yourself broke. This free calculator tells you what to actually charge per hour — factoring in the pay you want, your overhead, the hours you can really bill, and a profit margin on top. Adjust the numbers and watch your rate update instantly.
Truck, fuel, tools, insurance, phone, software, licenses
How to set your hourly rate
Your hourly rate is not just your paycheck divided by hours. A rate that survives covers four things at once:
- The take-home pay you actually want for the year.
- Your overhead — truck, fuel, tools, insurance, phone, software, licenses.
- Only your billable hours — not the 40-hour week, but the hours you can charge for after driving, quoting, and admin.
- A profit margin on top, so the business survives slow weeks and can grow.
Frequently asked questions
How do I calculate my hourly rate as a contractor?
Add the take-home pay you want for the year to your annual business expenses, then divide by the number of hours you can actually bill in a year (billable hours per week times weeks worked). That gives your break-even rate. Divide by one minus your profit margin to get the rate you should charge.
What are billable hours and why do they matter?
Billable hours are the hours you can actually charge a customer for — not the whole work week. Driving, quoting, invoicing, and admin aren't billable. Most solo tradespeople bill only 25 to 32 hours of a 40-hour week, so dividing by 40 makes your rate too low to cover the unpaid time.
Should my hourly rate include overhead and profit?
Yes. Your rate has to cover your pay, your overhead (truck, tools, insurance, phone, software), and a profit margin on top so the business grows. A rate that only covers your pay leaves nothing for slow weeks, equipment, or growth.
Is this hourly rate calculator free?
Yes — the calculator runs instantly in your browser and your numbers stay on your device. We just ask for an email to reveal your result and send the occasional tip on pricing and getting paid — no account, and you can unsubscribe anytime.
Got your rate? Now make sure you get paid for every hour. Document your work with WorkReceipt →