How the rate is worked out
The calculator adds the income you want to your yearly business costs, then divides by the hours you can actually bill:
Rate = (income + business costs) ÷ (billable hours per week × working weeks)
A buffer is added on top for income tax, quiet months and jobs that run over. With the starting numbers, $82,000 spread over 1,380 billable hours is about $59 an hour to break even, and around $74 with a 25% buffer.
Billable hours are fewer than you think
A 50-hour week on the tools rarely means 50 billable hours. Driving between jobs, picking up parts, quoting, chasing payments and doing paperwork all eat into it. Many solo tradespeople bill 25 to 32 hours a week, and freelancers often less.
Be honest about weeks too. Take out holidays, public holidays, sick days and the slow weeks your trade always has. 44 to 48 working weeks is a realistic range for most people working alone.
What to count as business costs
- Vehicle: payments or lease, fuel, insurance, maintenance.
- Tools and equipment, including replacing what wears out.
- Insurance: liability, and any trade-specific cover.
- Licences, certifications and training.
- Phone, software and accounting.
- Workshop or storage rent.
Materials you resell to clients usually don't belong here: put them on the invoice at cost plus a markup instead. The markup calculator helps with that.
Turning the rate into prices
Clients often prefer a fixed price per job. Estimate the hours, multiply by your rate and add materials with their markup. Keep a note of how long jobs really take, and adjust your quotes when you're consistently over.
Once you know your numbers, put your usual services into an estimate or invoice as saved items so every quote uses the same prices.
Last checked October 23, 2026.