Hourly Labor Rate Calculator
Your hourly rate has to cover more than your pay: truck, insurance, tools, phone and the hours you spend driving and quoting. Fill this in to find your real minimum rate.
Why your hourly rate is higher than you think
Most tradespeople can only bill 25 to 32 hours of a 40+ hour week. The rest goes to driving, buying materials, quoting and paperwork. Your rate has to cover those unpaid hours too.
Add up every monthly business cost: truck payment, fuel, insurance, licenses, tools, phone, software and accounting. Divide your yearly total by the hours you can actually bill, then add profit so the business can grow.
Questions
How much should a handyman charge per hour?
In most of the US, handymen charge between $50 and $100 per hour. Use the calculator with your own costs: your break-even rate is the minimum you can charge without losing money.
What counts as overhead?
Everything you pay to run the business that is not a specific job: vehicle, fuel, insurance, licenses, tools, phone, software, advertising and accounting.
Should I charge by the hour or by the job?
Many contractors use an hourly rate to price jobs, then quote a flat price. Customers like knowing the total up front, and you earn more when you work efficiently.