Contractor labor rate calculator: what an hour of your work really costs
Free labor rate calculator for contractors: overhead, your pay, your crew and the hours you can bill give your break-even rate and what to charge an hour. English and Spanish, no email.
What an hour of your work really costs
The truck, insurance, phone and software, your own pay and your crew, spread over the hours you can actually bill. Most crews bill 70 to 80% of the hours they work: the rest is driving, estimates and supplies.
Charge at least, per hour of work
$50.24
- Break-even an hour$42.70
- What it all costs a year$184,480
- Hours you can bill a year4,320
Charge = break-even ÷ (1 − profit). Below the break-even, every hour loses money. An estimate from your numbers, not financial advice.
How the number is made
- Add up a year: overhead × 12, your own pay, and each crew member’s cost an hour × hours × weeks.
- Count the hours you can really bill: everyone’s hours × the share that is billable (driving, estimates and supplies are not).
- Break-even = the year’s cost ÷ billable hours. Charge = break-even ÷ (1 − the profit you want).
Questions people ask
What is a billable hour?
An hour you can put on an invoice: time on the job. Driving between jobs, estimates, picking up supplies and paperwork are work too, but nobody pays for them directly, so your rate has to cover them.
What counts as overhead?
Everything you pay to stay in business that is not a single job: the truck and gas, insurance, licenses, phone, software, rent, tools and the accountant.
How much profit should I add?
Enough to save for slow months, new equipment and growth; many owners add 10 to 20% on top of break-even. Not financial advice.
Your numbers, on every quote.
Jetsy keeps your rates in a Price book and prices every job the same way, in English and Spanish. 30 days free, no card.
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