How the rate is calculated
Rate = (Take-home goal ÷ (1 − tax %) + business costs) ÷ billable hours per year
Billable hours are only the hours you're working on paid jobs. Driving, quoting, invoicing and marketing don't count, which is why most owners bill far fewer than 40 hours a week.
Using your rate
- Check every quote's hourly number (the other calculators on this site show it) against this minimum.
- If jobs keep landing below it, raise prices, cut drive time with tighter routes, or drop your least profitable service.
Frequently asked questions
How do I figure out what to charge per hour?
Add up the income you want, the taxes on it and your yearly business costs, then divide by the hours you can realistically bill in a year.
Is the tax percentage accurate?
It's a simple set-aside, not tax advice. Your accountant can give you the right number for your situation.