What you actually need to charge
Every other hourly-rate calculator assumes you're a company with employees. This one starts with the paycheque you want and works backward.
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Common questions
How do I calculate my true hourly rate as a solo contractor?+
Add the salary you want, your overhead (vehicle, insurance, tools, software, taxes), then divide by your billable hours per year - typically 1,000-1,400 for solo trades, not 2,080. The result is your break-even rate. Add a 20-35% margin for your target rate.
Why are my billable hours so much lower than 40/week?+
Solo operators spend 30-50% of their week on quoting, driving, ordering parts, invoicing, and admin. Realistic billable hours land at 20-28/week, which is why charging by 'salary divided by 2,080' produces rates that lose money.
What's a fair hourly rate for a handyman in 2026?+
Solo handymen in North America typically need $75-$125/hour to clear $60-80k after overhead. Rates below $65/hour usually mean the business is underwater and the owner is paying themselves less than minimum wage on a per-hour basis.
Should I charge a flat rate or hourly?+
Use this calculator to find your true cost-per-hour, then build flat-rate pricing on top of it. Flat rates protect your margin on jobs that go fast and feel less scary to customers, but you must know your hourly cost first.
Is this calculator built for employees or business owners?+
Owner-operators and 2-person shops. It treats the owner as both labor and capital, accounts for self-employment tax, and excludes the labor-burden assumptions (workers comp, payroll tax, benefits) that bloat enterprise calculators.