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Hourly rate
calculator.
How much should you charge per hour to cover costs, pay yourself a salary and make a profit? Enter your numbers and get the answer in 30 seconds.
Hourly rate = (costs + salary) ÷ billable hours × (1 + profit)
How to calculate your hourly rate.
- 1
Add up your monthly business costs
Van and fuel, tools and depreciation, insurance, phone, accountant, software. Everything you pay even when you're not working.
- 2
Decide the salary you want
The amount you want to pay yourself each month, as if you were employed by your own business.
- 3
Be realistic about hours
Out of 160 hours a month you usually bill 100 to 120. The rest goes on quotes, buying materials, driving and admin.
- 4
Add a business profit
10 to 20 % above costs leaves a buffer for slow months, new machines and growth.
FAQ
How much should you charge per hour to cover costs, pay yourself a salary and make a profit? Enter your numbers and get the answer in 30 seconds.
For most tradespeople 100 to 120 out of about 160 working hours. The rest goes on quotes, buying materials, driving and paperwork.
No. Charge materials separately, at cost plus any markup. The hourly rate covers your labour, business costs and profit.
Derive prices per m², metre or piece from it: divide your hourly rate by the number of units you really complete in an hour.