Hourly Rate Calculator
Find the hourly rate a self-employed tradesperson actually needs to charge.
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Work out what you actually need to charge per hour
Most self-employed tradespeople set their hourly rate by guesswork or by copying a competitor. This calculator works backwards from what you need to earn — personal income, business overhead and profit — to a rate that actually covers it, accounting for the fact you can't bill 100% of your working hours.
How to use it
- Enter the personal income you want to take home, plus your business overhead and any profit target.
- Enter how many weeks, days and hours you actually work.
- Set your billable percentage — the share of working hours you can actually charge a customer for, after admin, quoting, travel and downtime.
The formula
Worked example
Desired income $80,000, overhead $20,000, profit target $10,000, working 48 weeks at 5 days × 8 hours with 70% billable time. That's 1,344 billable hours a year, giving a recommended hourly rate of $81.85.
Frequently Asked Questions
Why isn't my billable percentage 100%?
Almost nobody bills 100% of their working hours. Quoting, admin, travel between jobs, supplier runs and downtime all eat into the day. 60–80% billable is typical for a working tradesperson.
What's the difference between break-even and recommended rate?
The break-even rate covers your income and overhead with no profit left over for the business. The recommended rate adds your profit target on top.
Does this rate include materials?
No — this is a labour rate only. Use the job pricing calculator to price a full job including materials and other costs.