True Hourly Rate Calculator for Contractors
Most contractors undercharge because they don't account for unbillable time (driving, admin, sales). Calculate your real hourly rate to break even vs. make a profit.
Truck payment, insurance, tools, fuel
Most contractors: 20-30 hours (not 40!)
52 weeks - 4 vacation = 48 weeks
Breakeven Rate
$75.00/hr
Minimum to cover costs (NO profit)
Target Rate (30% Profit)
$107.14/hr
Industry standard for sustainable business
Annual Profit Potential
$38,571.43/year
Annual profit at target rate
Stop tracking hours in spreadsheets. Crewdex automatically logs billable time per job and shows you real vs. target hours every week.
Start Free TrialKnow your real numbers — Crewdex tracks actual billable hours per job and shows you weekly profitability reports.
Why Most Contractors Undercharge
If you're charging $50/hour and work 40 hours a week, you're not making $104,000/year. After unbillable time, overhead, and taxes, you might take home less than minimum wage.
5 Common Pricing Mistakes
Show 5 common mistakes▼
1. Not Accounting for Unbillable Time
Driving, estimates, admin, marketing, and sales. Most contractors only bill 20-30 hours per week, not 40.
2. Forgetting Overhead Costs
Truck payments, insurance, tools, fuel, licensing, phone, software subscriptions. $2,000-$4,000/month is typical.
3. Charging Breakeven Rates
If you charge exactly what you need to cover costs, you make $0 profit. No money for slow seasons, equipment replacement, or growth.
4. Ignoring Vacation and Time Off
You can't work 52 weeks a year. Holidays, sick days, family emergencies. Budget for 48 billable weeks maximum.
5. Competing on Price Instead of Value
Customers who only care about the lowest price will never be loyal. Focus on service quality, reliability, and guarantees.
1. Not Accounting for Unbillable Time
Driving, estimates, admin, marketing, and sales. Most contractors only bill 20-30 hours per week, not 40.
2. Forgetting Overhead Costs
Truck payments, insurance, tools, fuel, licensing, phone, software subscriptions. $2,000-$4,000/month is typical.
3. Charging Breakeven Rates
If you charge exactly what you need to cover costs, you make $0 profit. No money for slow seasons, equipment replacement, or growth.
4. Ignoring Vacation and Time Off
You can't work 52 weeks a year. Holidays, sick days, family emergencies. Budget for 48 billable weeks maximum.
5. Competing on Price Instead of Value
Customers who only care about the lowest price will never be loyal. Focus on service quality, reliability, and guarantees.
Industry Billable Hours by Trade
| Trade | Billable Hours/Week |
|---|---|
| HVAC | 22-28 hours |
| Plumbing | 25-30 hours |
| Electrical | 24-32 hours |
| Roofing | 20-26 hours |
| Landscaping | 28-35 hours |
| General Contracting | 18-25 hours |
Unbillable Time Tracker
Where does the other 10-20 hours per week go?
- •Driving: 5-8 hours/week (commute, job sites, supply runs)
- •Estimates: 3-5 hours/week (site visits, measurements, proposals)
- •Admin: 2-4 hours/week (invoicing, scheduling, emails)
- •Marketing: 1-3 hours/week (social media, ads, networking)
- •Sales Calls: 2-4 hours/week (follow-ups, negotiations)
How Crewdex Helps
- ✓Automatic time tracking per job (know your real billable hours)
- ✓Job templates with built-in markup (never undercharge again)
- ✓Profitability reports (see which jobs make money and which don't)
- ✓Reduce admin time by 70% (automated invoicing, scheduling, follow-ups)
Track Billable Hours Automatically
Stop guessing at your hourly rate. Crewdex tracks time per job and shows you real profitability.
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