Most people set their rate by asking what the other guy charges. This works it out from your own numbers instead: the pay you want to take home, what the business costs to run, and how many hours a week you can really bill.
Your numbers
The starting figures are placeholders, not advice. Replace every one with your own.
How the number is worked out
Billable hours are the whole story. You might work 45 hours a week, but driving, quoting, supply runs and paperwork are not billed to anyone. For most solo operators somewhere between half and three quarters of working hours are billable. Your rate has to cover all the hours from only the billable ones.
The sum. Add the pay you want to your yearly business costs. Divide by the billable hours in your year. Then divide by one minus your profit margin, so the business keeps something after paying you.
What counts as a business cost. Vehicle, fuel, insurance, tools and equipment, materials you do not bill through, phone, software, licences, accounting, advertising. If you are self-employed in the US, remember that self-employment tax comes out of your pay: set the pay figure with that in mind.
A rate is not a price. For jobs you quote as a fixed price, estimate the hours, multiply by this rate, add materials, and quote that. The customer sees a price; you know it covers your time.
Then stop retyping the job
Once you know your number, the rest is admin: the estimate, the calendar, the invoice. Field Manager carries one job through all three without retyping it, and rolls repeat work into one monthly invoice per customer. It is free for your first five customers, invoicing included, then $19/month flat with your crew included.
Common questions
How do I work out my hourly rate as a self-employed tradesperson?
Add the pay you want for the year to your yearly business costs, divide by the number of hours you can actually bill in a year, then divide by one minus your profit margin. The calculator on this page does that sum with your own numbers.
What share of my working hours is billable?
For most solo service businesses, somewhere between half and three quarters. Driving, quoting, supply runs and paperwork are work, but nobody is billed for them, so your rate has to cover them.
Is this calculator free?
Yes. It runs in your browser, needs no sign-up, and does not store or send your numbers anywhere.
Know your rate. Now send the estimate.