Free tool
Contractor Hourly Rate Calculator for Local Trades
Enter what you want to earn, what the business costs to run, and how many hours you bill each week. The calculator shows your break-even hour and the hourly rate that keeps your margin. It uses 48 working weeks a year. Built for plumbers, HVAC techs, electricians, glass shops, landscapers and other local trades. No sign-up.
Work out your hourly rate
The math runs in your browser. This calculator doesn’t save or send your numbers.
The starting numbers are a made-up example, not industry averages. Swap in your own. Working weeks are fixed at 48 a year.
Your numbers
Billable hours a year
1,440
Break-even per billable hour
$70
Hourly rate with your margin
$82
- You can bill about 1,440 hours a year (30 a week across 48 weeks).
- To cover your pay and business costs, each billable hour has to bring in at least $70.
- With a profit margin of 15%, charge about $82 per billable hour.
- A margin of 15% is the same as a markup of 17.6% on your costs.
A planning tool, not tax or accounting advice. Check your numbers with your bookkeeper or accountant.
How to figure out your hourly rate
- Add up a year of costs: the pay you want plus business costs (truck, insurance, tools, crew).
- Count the hours you bill in a typical week. The calculator multiplies that by 48 working weeks.
- Divide the costs by the billable hours. That is your break-even hour.
- Divide the break-even hour by one minus your margin. A 20% margin means dividing by 0.8.
Margin vs markup
Margin and markup are easy to mix up. Margin is measured on what you charge. Markup is measured on what it costs you.
- A 10% margin is the same as an 11.1% markup.
- A 20% margin is the same as a 25% markup.
- A 30% margin is the same as a 42.9% markup.
If you add a 20% markup and think you are keeping a 20% margin, you are keeping less than you planned.
Questions
How much should I charge per hour?
There is no single right number for every trade or town. It depends on your yearly costs, how many hours you bill, and the margin you want to keep. This calculator divides your yearly costs by your billable hours (hours a week times 48 weeks), then adds your margin on top.
What is the difference between margin and markup?
Margin is the share of the amount you charge that you keep as profit. Markup is how much you add on top of your cost. They are not the same number: a 20% margin is the same as a 25% markup. The calculator shows both.
What counts as business costs?
Business costs are what you pay to keep the shop running for a year: truck payments, fuel, insurance, licenses, tools, phone, software, rent, marketing and crew wages if you have a crew. Add them up for a full year.
What are hours you bill per week?
Hours you bill per week are the hours that go on a customer’s bill. Drive time, estimates, paperwork and supply runs usually do not count. The calculator multiplies the hours you enter by 48 working weeks.
Does this calculator save or send my numbers?
No. The math runs in your browser, and this calculator doesn’t save or send your numbers. There is no sign-up.
Is this tax or accounting advice?
No. It is a planning tool. Check your numbers with your bookkeeper or accountant before you change what you charge.
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Book a free Berg Boys auditLast updated: Oct 27, 2026