Enter the pay you want, what your business costs to run, and the hours you can honestly bill — and see the rate that actually pays you.
Your numbers
Not 40! Driving, quoting, and callbacks don't bill. Most solo contractors land at 20–30.
What to charge
1,200
Billable hrs/yr
$71
Break-even/hr
$8
Profit/hr
Anything under $71/hr and you're paying to work. The gap between "busy" and "profitable" is usually this number.
Price every job at this rate — free trialYour rate has to carry three things: the paycheck you want, the cost of staying in business (insurance, the truck, tools, your phone), and a margin so one slow month doesn't wipe you out. Then it all gets divided by the hours a customer actually pays for — not the hours you work. That one honest correction is why this calculator's answer is usually higher than what you charge now.
The trap
"I want $35/hour, so I charge $35/hour." That $35 also has to pay for the drive, the quote that didn't close, the insurance, and the week between jobs. Charging your wage as your rate is why so many booked-solid contractors have empty bank accounts.
How do I figure out my hourly rate as a contractor?
Add the yearly pay you want to your yearly overhead, divide by your real billable hours per year (billable hours per week × weeks worked), then add a profit margin on top. That last division by billable — not total — hours is the step most people skip, and it's why so many busy contractors are broke.
Why not just use 40 hours a week?
Because you can't bill 40. Driving between jobs, quoting, picking up material, callbacks, and paperwork all eat hours nobody pays for. Most solo contractors genuinely bill 20–30 hours in a 45-hour week. Divide by 40 and your rate comes out 30–50% too low.
What's a good hourly rate for a handyman or contractor?
It depends on your market, trade, and overhead — which is exactly why a formula beats copying someone else's number. Run your own costs through the calculator; in most U.S. markets the answer for a legitimate, insured solo contractor lands well above $50/hour.
Now turn the rate into a job price: use the markup & margin calculator or read the full pricing guide.