What this number means
This is the minimum hourly rate required to cover your target pay and your annual overhead. It is a floor, not a stretch goal.
Contractor pricing
Hourly Rate Calculator
Calculate what you actually need to charge per hour to be profitable.
Enter your real numbers
Calculate what you actually need to charge per hour to be profitable.
$
$
Results
Your rate has to cover both your pay and the cost of running the business.
- Required Hourly Rate
- $93.75
- Total Annual Revenue Needed
- $135,000.00
- Total Billable Hours
- 1,440.0
$135,000.00 spread across 1,440.0 billable hours requires $93.75 per hour.
Education
Why most contractors undercharge
Many contractors base pricing on what competitors charge or what feels reasonable. That ignores insurance, vehicles, admin time, tools, downtime, and the profit needed to stay healthy.
Why billable hours matter
You do not get paid for every hour you work. Estimating, travel, callbacks, and admin all reduce billable time, which means your hourly rate must be higher than most people expect.
Related resources
contractor proposal templateOpen the related StackQuotes resource.roofing estimate templateOpen the related StackQuotes resource.Labor Burden CalculatorOpen the related StackQuotes resource.True Labor Cost GuideOpen the related StackQuotes resource.Job Costing GuideOpen the related StackQuotes resource.Markup vs Margin CalculatorOpen the related StackQuotes resource.
Knowing your hourly rate is step one. Applying it consistently across jobs is what protects your margins.
See the practical next steps