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Free Tool — Contractor Pricing

Contractor Hourly Rate Calculator

"What should I charge per hour?" is the question that quietly decides whether your business makes money. Enter the salary you want, your overhead, your real billable hours, and a profit margin — and this labor rate calculator for contractors tells you the exact rate to bill. No signup, instant results.

The take-home pay you want for yourself per year.
Insurance, vehicle, tools, software, phone, marketing.
Profit on top of covering salary + overhead.
Hours you can actually invoice — not driving or quoting.
52 minus vacation, holidays, and slow weeks.

Your Recommended Hourly Rate

The charge-out rate that covers pay, overhead, and profit.

$0 /hr
Recommended hourly charge-out rate

Most contractors bill between $75 and $200/hr depending on trade and market.

Base cost per billable hour $0
Profit per billable hour $0
Billable hours per year 0
Bill this — per hour $0
Put Your Rate to Work — Free 30-Day Trial

No credit card required • Cancel anytime

How the Hourly Rate Is Calculated

No black box. Here's the exact math this calculator runs — the same way an accountant would build your rate from the ground up.

annual_billable_hours = billable_hours_per_week × working_weeks
base_cost_rate = (salary + overhead) ÷ annual_billable_hours
recommended_charge_rate = base_cost_rate ÷ (1 − profit% ÷ 100)

⇒ you bill the recommended_charge_rate for every billable hour.

Billable hours are the denominator

All your salary and overhead has to be recovered from the hours you can actually invoice. A 40-hour week with 30 billable hours means 25% of your time earns nothing directly — and that pushes your rate up, not down.

Overhead is not optional

Insurance, your truck, fuel, tools, phone, and invoicing software all get paid before you do. Leaving overhead out is the single most common reason contractors quietly lose money on every job.

Profit is dividing, not adding

A 20% margin means profit is 20% of the price, so you divide by (1 − 0.20), not multiply by 1.20. Margin and markup are different — see the markup vs margin calculator to avoid that trap.

A One-Person Contractor at $70k

Say you want to pay yourself a $70,000 salary and your business runs on $30,000 of overhead a year — insurance, a truck, fuel, tools, phone, and software. You realistically bill 30 hours a week across 48 working weeks, and you want a 20% profit margin on top.

Billable hours/year (30 × 48)1,440 hrs
Salary + overhead ($70,000 + $30,000)$100,000
Base cost rate ($100,000 ÷ 1,440)$69.44 /hr
Divide by (1 − 0.20)÷ 0.80
Recommended hourly rate$86.81 /hr

At $86.81/hr, every billable hour covers $69.44 of your salary and overhead and leaves $17.37 of profit. Charge the "round" $70/hr instead and you cover costs but earn zero profit — and if a slow month drops you to 25 billable hours a week, even breaking even gets tight. Pressure-test that with the overhead break-even calculator, then price whole jobs with the job profit calculator and the labor cost calculator template.

Why Most Contractors Undercharge

The number one pricing mistake in the trades isn't greed — it's forgetting two things: non-billable time and overhead. Owners look at a $70,000 salary target, divide by 2,080 hours (40 × 52), and land on ~$34/hr. But you can't bill all 2,080 hours, and $34 doesn't touch your insurance or your truck payment. The real recoverable base is closer to $69/hr before a cent of profit.

The second mistake is confusing markup with margin. Adding "20%" to your cost is a markup and only yields a ~16.7% margin. To actually keep 20%, you divide by 0.80 — which is exactly what this calculator does.

Know your real rate and quoting gets calmer: you can hold your price, walk away from jobs that won't clear it, and stop subsidizing customers out of your own paycheck. Plug in your real numbers above, then start a free trial and put that rate on every quote and invoice.

Hourly Rate Questions

How much should a contractor charge per hour?
Most independent contractors and small trade businesses bill between $75 and $200 per hour, but the right number depends on the salary you want, your annual overhead, how many hours you can actually bill, and your target profit margin. The calculator above works backward from those four numbers to a rate that covers everything and still leaves a profit.
Why is my hourly rate higher than my hourly wage?
Your charge-out rate covers far more than take-home pay: overhead (insurance, vehicle, tools, software, phone), the non-billable time you spend quoting, driving, and doing admin, and a profit margin on top. A tech who wants $70,000 in salary can easily need to bill $85+ per hour once overhead and unbillable hours are counted.
What are billable hours and why do they matter?
Billable hours are the hours you can actually invoice a customer for. A 40-hour week rarely means 40 billable hours — driving, quoting, callbacks, and paperwork eat a big chunk. If only 30 of your 40 hours are billable, all of your salary, overhead, and profit have to be recovered from those 30 hours, which pushes your rate up.
Is this hourly rate calculator free?
Yes. It runs instantly in your browser, requires no signup or email, and nothing you type is stored. RevoField itself also offers a free 30-day trial with no credit card required.

Know Your Rate. Now Charge It.

A rate on a napkin doesn't help if it never reaches the invoice. RevoField puts your correct hourly rate straight into quotes and invoices, tracks billable time on every job, and lets you take card payments on-site — so the number you calculated is the number you actually collect.

Start Free Trial — No Card Required View Pricing

Starter $49/mo • Growth $119/mo • Pro $199/mo • 30-day free trial

You Found Your Rate.
Now Get Paid It.

Stop underquoting from a napkin. RevoField turns your real hourly rate into fast quotes, clean invoices, and on-site payments — start your free trial and bill with confidence on your next job.

Free 30-day trial • No credit card required • Cancel anytime