Contractor pricing
Hourly Rate Calculator
Calculate what you actually need to charge per hour to be profitable.
Enter your real numbers
Step 1: Total Required Revenue = Salary + Overhead
Step 2: Total Billable Hours = Billable Hours per Week � Weeks per Year
Step 3: Hourly Rate = Total Required Revenue � Total Billable Hours
Results
Your rate has to cover both your pay and the cost of running the business.
Required Hourly Rate
$0.00
Total Annual Revenue Needed
$0.00
Total Billable Hours
0
If you charge less than this, you are losing money.
What this number means
This is the minimum hourly rate required to cover your target pay and your annual overhead. It is a floor, not a stretch goal.
Why most contractors undercharge
Many contractors base pricing on what competitors charge or what feels reasonable. That ignores insurance, vehicles, admin time, tools, downtime, and the profit needed to stay healthy.
Why billable hours matter
You do not get paid for every hour you work. Estimating, travel, callbacks, and admin all reduce billable time, which means your hourly rate must be higher than most people expect.
Related resources
Knowing your hourly rate is step one. Applying it consistently across jobs is what protects your margins.