Contractor Hourly Rate Calculator
Calculate exactly what hourly rate you need to charge to hit your income goals after expenses and taxes.
Most contractors guess at their hourly rate and end up working for less than minimum wage once expenses are factored in. This calculator works backwards from your income goals to tell you exactly what you need to charge.
The formula accounts for everything: your desired take-home pay, business expenses, vehicle costs, tools, insurance, taxes, and the reality that you can't bill 40 hours a week—some time goes to estimates, travel, admin, and chasing payments.
How to Use This Calculator
- Enter your desired annual take-home pay (after taxes)
- Add up your annual business expenses (tools, insurance, marketing)
- Include vehicle costs (gas, maintenance, payments)
- Set your estimated tax rate (typically 25-35% for self-employed)
- Enter realistic billable hours per week (most contractors bill 25-35 hrs)
- Adjust weeks worked per year (account for vacation, slow seasons)
- See your required hourly rate and annual gross needed
tune Your Numbers
payments Your Rate
Recommended Hourly Rate
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Gross Needed
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Billable Hours/Yr
Average Contractor Hourly Rates by Trade (2024)
| Trade | Average Rate | Range |
|---|---|---|
| General Handyman | $50-75/hr | $35-125 |
| Electrician | $75-100/hr | $50-150 |
| Plumber | $75-125/hr | $50-200 |
| Carpenter | $50-85/hr | $35-125 |
| Painter | $40-60/hr | $25-85 |
| General Contractor | $50-150/hr | $40-250 |
Rates vary significantly by region. Urban areas and high cost-of-living cities command 50-100% higher rates.
Frequently Asked Questions
Why is my calculated rate so much higher than I'm charging?
Most contractors dramatically underestimate their true costs. When you factor in unbillable time, vehicle expenses, insurance, and taxes, you need to charge 2-3x what you might expect.
What's a realistic number for billable hours per week?
For most solo contractors, 25-30 billable hours is realistic. Time goes to estimates, travel, admin, and the inevitable no-shows and cancellations.
Should I charge the same rate for all jobs?
Many contractors charge different rates for different job types. Quick service calls often warrant higher rates, while larger projects can be priced lower per hour.
How do I justify a high hourly rate to customers?
Focus on the value delivered, not the time. Customers pay for your expertise, tools, insurance, and the problem being solved—not just labor hours.