The four inputs behind your rate.
Available hours
Separate billable capacity from meetings, callbacks, training, and non-working time.
Operating costs
Fold in payroll, vehicles, insurance, software, rent, fuel, and other recurring expenses.
Profit target
Set the rate from the margin you need, not from what a competitor once charged.
Growth costs
Include recruiting, marketing, tools, and reserves before the business outgrows the rate.
Free Tradesman Calculator
Calculate your honest hourly rate for your trades business. Factor in all expenses, capacity constraints, and profit margins to price your services right and build a sustainable business.
Work Schedule & Capacity
Define your working hours and billable capacity
Total Work Days/Year
237
Total Work Hours/Year
1,896
Available Billable Hours
5,688
Annual Billable Hours
4,266
Business Expenses
Track all annual operating and growth expenses with hourly breakdowns
Operating Expenses
Annual business expenses and hourly breakdown
Personnel Costs
Employer Taxes
$32,400.00
Insurance & Benefits
Vehicle Expenses
Office & Operations
Marketing & Professional Services
Other Expenses
Total Operating (Annual)
$457,500.00
Total Operating (Hourly)
$107.24
12-Month Growth Expenses
Investment in business growth and expansion
Total Growth (Annual)
$28,000.00
Total Growth (Hourly)
$6.56
Business Overview
Key metrics and financial insights for your business
Your Hourly Rate
With 50% profit margin
Annual Billable Hours
18 hrs/day average
Total Annual Expenses
$2,048.52/day
Annual Revenue Target
At full capacity
Expense Breakdown
Where your money goes annually
Operating Expenses
$107.24/hour
$457,500.00
94.2% of total
Growth Expenses
$6.56/hour
$28,000.00
5.8% of total
Total Expenses
$113.81/hour
$485,500.00
Annual total
Break-Even Analysis
Hourly break-even rate
$113.81
Daily break-even revenue
$2,048.52
Annual break-even revenue
$485,500.00
Profit Projections
Profit per billable hour
$113.81
Daily profit potential
$2,048.52
Annual profit potential
$485,500.00
Daily Break-Even Analysis
Understand what it takes to cover expenses each working day
Daily Operating Cost
$2,048.52
Per working day
Daily Break-Even Revenue
$2,048.52
Minimum to cover costs
Daily Billable Hours
18 hrs
Average sold per day
Daily Revenue Capacity
$4,097.05
Target with profit margin
Understanding Your Daily Numbers
Daily Operating Cost: Every working day, your business spends $2,048.52 on expenses before earning a single dollar.
Break-Even Point: You need to bill at least $2,048.52 each day just to cover costs with zero profit.
Profit Target: To achieve your 50% profit margin, aim to bill $4,097.05 daily (18 billable hours at $227.61/hr).
Your Honest Hourly Rate
Final calculation based on all expenses and profit margin
Total Expenses (Annual)
$485,500.00
Hourly Expense Rate
$113.81
Your Honest Hourly Rate
$227.61
This rate covers all expenses and your desired profit margin
Revenue Projections
| Time Period | Expenses | Revenue (Full Capacity) | Profit | Profit Margin |
|---|---|---|---|---|
| Per Hour | $113.81 | $227.61 | $113.81 | 50% |
| Per Day | $2,048.52 | $4,097.05 | $2,048.52 | 50% |
| Per Week | $9,336.54 | $18,673.08 | $9,336.54 | 50% |
| Per Month | $40,458.33 | $80,916.67 | $40,458.33 | 50% |
| Per Year | $485,500.00 | $971,000.00 | $485,500.00 | 50% |
Treat the rate as an operating baseline
A healthy hourly rate protects every downstream quote, even when the customer only sees a fixed project price.
- Recalculate after adding trucks, technicians, insurance, or a new service area.
- Use the output as the floor for job pricing, not as a promise that every job should be hourly.
- Compare the result against break-even and P&L views before changing published pricing.
Make the rate usable by the team
The calculator creates the baseline. Thorbis helps turn it into estimating rules, scheduling capacity, and finance checks that the office can repeat.
Turn the rate into estimate templates
Use Thorbis estimates to keep labor assumptions, materials, and margin visible before a quote is sent.
Open feature→Protect capacity on the calendar
Map the new rate to dispatch availability so sold work lines up with real technician hours.
Open feature→Watch margin after launch
Track whether the new rate improves collected revenue, not just quoted revenue.
Open feature→Put the rate to work across the day.
Service calls
Set a minimum diagnostic and labor floor before small jobs quietly lose money.
Replacement quotes
Use the rate to price larger work without hiding labor inside materials markup.
New truck planning
Model the added vehicle, insurance, tools, and technician capacity before hiring.
New service area
Account for drive time, fuel, and dispatch coverage before expanding the radius.
Keep the rate current as the business changes
The rate breaks when capacity is too optimistic
The hourly rate should survive the real week, not the cleanest week on paper.
- Counting every paid hour as billableMeetings, callbacks, training, and slow seasons reduce the hours that can actually carry cost.
- Forgetting the owner wageIf the owner works in the field or office, their replacement cost belongs in the model.
- Copying competitor ratesA lower competitor rate does not prove their economics work, and a higher rate does not guarantee your margin.
Make the new rate operational before it goes public
A rate change needs estimating rules, discount limits, and customer language so the team applies it consistently.
Cost proof
Keep wage, insurance, truck, software, and overhead assumptions visible for owner review.
Capacity proof
Track actual billable hours against the modeled hours so the rate does not drift.
Margin proof
Compare quoted margin with collected margin after the new rate reaches real jobs.
Keep the numbers honest across your whole business.
Job Pricing Calculator
Price jobs accurately with material, labor, and overhead costs.
Open tool→Profit & Loss Calculator
Track revenue, expenses, and calculate your net profit margins.
Open tool→Commission Calculator
Calculate sales commissions and technician incentive pay.
Open tool→Break-Even Calculator
Find out how much revenue you need to cover your costs.
Open tool→Industry Pricing Standards
Compare your pricing against industry benchmarks and averages.
Open tool→