A practical guide for contractors and trade business owners on how to calculate a billable hourly rate that actually covers wages, overhead, and profit.
Your wage is what you pay yourself. Your billable rate is what the customer pays per hour, and it must cover unbillable time, overhead, taxes, and profit. The gap between the two is where most contractors undercharge.
We walk through a realistic crew calculation showing why a $33.65/hr wage often requires a $90+ billable rate to keep the business profitable.
Strategies for repositioning, packaging, and communicating a higher rate so existing clients accept the change.