Free Calculator

What should you charge per hour?

Most contractors undercharge because they only think about their take-home pay. This calculator figures out your real hourly rate — covering expenses, taxes, time off, and unpaid work.

Your numbers

$
$

Truck, fuel, insurance, tools, software, phone, etc.

%

Federal + state + self-employment tax (25–30% is typical)

%

How much of your working time is actually billable. The rest is quoting, driving, paperwork.

52 minus vacation, slow weeks, holidays, sick time

Your hourly rate

$107/hr

Take-home goal$75,000
Pre-tax needed$104,167
Annual expenses$24,000
Total revenue needed$128,167
Billable hours / year1,196

How the math actually works

1. Start with what you want to take home

This is the number that matters — what ends up in your bank account after every expense and tax is paid. Don't start with "what other contractors charge." Start with what you need to live on.

2. Add business expenses

Truck payments, fuel, insurance, tools, software, phone, accounting fees, marketing. These have to come out of what you bill before you pay yourself.

3. Add self-employment taxes

As a solo contractor, you pay both sides of Social Security and Medicare (about 15.3% in the US) plus federal and state income tax. A safe estimate is 25–30% of your gross income set aside for taxes.

4. Divide by your actually billable hours

Here's where most contractors go wrong. You don't bill 40 hours a week. You quote jobs, drive to job sites, handle customer calls, pick up materials, do paperwork. Your billable time is usually 50–70% of your working hours.

5. Account for time off

Vacation, holidays, sick days, slow weeks — you don't bill 52 weeks a year. Most solo contractors bill 44–48 weeks. Subtract that before you divide.

Now put that rate in your quotes.

SoloBid saves your hourly rate in your price book. Every new quote starts with the right number — no more guessing, no more undercharging.

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