Contractor Hourly Rate Calculator

Find out exactly what you should charge per hour to hit your income goals

Free tool by ThePocketBoss - enter your income goal and expenses, and we'll calculate the hourly rate you need to charge.

Your Income Goals

$

What you want to pay yourself after all expenses

$

Insurance, vehicle, tools, marketing, software, taxes

hrs

Hours actually spent on paying work (not admin, travel, quoting)

weeks

Subtract vacation, sick days, and seasonal slowdowns

Pro Tip: Most contractors only bill 25-30 hours per week. The rest goes to estimates, travel, admin, and follow-ups. Be realistic with billable hours.

Your Recommended Rate

Recommended Hourly Rate
$0/hr
Annual Revenue Needed$0
Monthly Revenue Needed$0
Effective Daily Rate$0/day
Total Billable Hours/Year0 hrs
Expense-to-Revenue Ratio0.0%
Take-Home Pay
$75,000
Expenses
$25,000
Rate Assessment: Below Market
Your rate may be too low to sustain the business long term. Consider reducing expenses or increasing billable hours.

How to Set Your Contractor Hourly Rate

Why Most Contractors Undercharge

Many contractors set their rate based on what competitors charge or what feels right. The problem is they forget to account for non-billable time, seasonal dips, and rising expenses. This calculator works backward from your income goal to find the rate you actually need.

What to Include in Business Expenses

  • Insurance: General liability, workers comp, vehicle insurance
  • Vehicle costs: Fuel, maintenance, payments, registration
  • Tools & equipment: Purchases, repairs, replacements
  • Marketing: Website, ads, business cards, leads
  • Software: Invoicing, scheduling, accounting tools
  • Taxes: Self-employment tax, estimated quarterly payments
  • Office: Phone, internet, supplies, storage

Billable vs. Non-Billable Hours

If you work 40 hours a week, you probably only bill 25-30 of them. The rest goes to writing estimates, driving between jobs, answering calls, ordering materials, and bookkeeping. Being honest about billable hours is the key to setting a rate that actually works.

How ThePocketBoss Helps You Earn More

ThePocketBoss tracks your time on every job so you know exactly how many hours you're billing. Combined with expense tracking and invoicing, you get a clear picture of whether your rate is working - and when it's time to raise it.

Frequently Asked Questions

What should a contractor charge per hour?

It depends on your trade, location, and expenses. Most contractors charge between $50 and $150 per hour. Use this calculator to find your specific number based on your actual income goals and costs.

Should I charge the same rate for every job?

Your hourly rate is a starting point. Some jobs justify a higher rate due to complexity, urgency, or specialized skills. Use your calculated rate as a floor - never go below it.

How many billable hours is realistic?

For most solo contractors, 25-30 billable hours per week is realistic. The rest of your work week goes to non-billable tasks like estimates, travel, invoicing, and follow-ups.

How often should I recalculate my rate?

Review your rate every quarter. Costs change - insurance renewals, fuel prices, new tool purchases. If your expenses go up and your rate stays the same, your take-home shrinks.

Know Your Numbers. Grow Your Business.

ThePocketBoss tracks your time, expenses, and invoices so you always know if your rate is working for you.

Only $19.99/month • 14-day free trial • Cancel anytime