A charge-out rate calculator works out the hourly rate you need to invoice clients to cover your salary, business overhead, and taxes — and still turn a profit. Also called a billable rate or contract hourly rate, this is the number that goes on your quote. Enter four inputs below and the calculator does the rest.
Enter your target annual net salary, total annual business overhead (insurance, vehicle, tools, software, licenses), billable hours per week, and working weeks per year. The calculator divides total costs by total billable hours to give your minimum viable charge-out rate. Add 10–20% profit on top of that break-even figure before quoting a client.
Charge-out rate, billable rate, and contract hourly rate all mean the same thing: the amount on your invoice per hour of work. The term charge-out rate is common in Australia, New Zealand, and the UK; US contractors typically say billable rate. Both must cover wages, overhead, taxes, and profit — this calculator gives you that number regardless of which term you use.
The most common mistake is pricing against competitors rather than against actual costs. Once you count unbillable time (admin, travel, quoting), self-employment tax (15.3% in the US), vehicle depreciation, and tool replacement, the true break-even charge-out rate is typically $20–$40/hr higher than contractors initially assume.
Most trade contractors can only bill 25–30 hours per week out of a 40–50 hour workweek. The rest goes to estimates, admin, travel, and marketing. Use your realistic billable hours — not your total hours — when calculating your charge-out rate. Overestimating billable hours is the second most common reason contractors set rates too low.
General contractor: $80–$150/hr. Electrician: $75–$130/hr. Plumber: $80–$130/hr. HVAC technician: $75–$120/hr. Roofer: $60–$100/hr. Carpenter/framing: $60–$100/hr. Painter: $40–$70/hr. Flooring installer: $50–$90/hr. Landscaper: $45–$80/hr. General laborer: $35–$60/hr. These are US benchmarks for established contractors — rates vary 20–50% by region. Use this calculator to find your specific charge-out rate based on your own costs.