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For trades, cleaners and handymen
WHAT SHOULD YOU CHARGE PER HOUR?
Most people price by what others charge, then wonder why the money runs out. Start from what you need to take home and work backwards. Already have a rate? Put it in and see what it really pays you.
Knowing your rate is step one. Quoting it every time is step two.
We make ScopeBid, an estimate and invoice app for independent service pros: painters, cleaners, handymen, landscapers and small contractors. It remembers how you priced past jobs, so the next quote starts from a real job instead of a blank page.
- Price first or cost first: enter labour and materials and see a suggested price and your profit before you send.
- Professional PDF quotes, then invoices, deposits and balances, even with no signal.
- Your first 3 quotes are free, with full PDFs. ScopeBid Pro is optional.
- No account and no cloud copy of your business data.
How the rate is worked out
- Money the jobs must bring in = take-home pay + business costs.
- Add tax: divide by (1 − tax %). At 25%, every 75 you keep needs 100 billed.
- Add your buffer for profit and quiet months: multiply by (1 + buffer %).
- Billable hours a year = billable hours a week × (52 − weeks off).
- Minimum rate = step 3 ÷ step 4.
The tax figure is a set-aside, not a tax calculation. Your actual income tax, self-employment tax, VAT, GST or HST depends on where you live and how the business is set up. An accountant can tell you the right percentage to put away.
Three things that change the answer most
- Billable hours. Dropping from 32 to 26 billable hours a week raises the rate you need by about 23%. It’s the number people overestimate most.
- Weeks off. Two weeks of holiday plus a week of sickness plus a slow January is already four.
- The van. For most trades the vehicle is the biggest cost after you. Fuel, insurance, repairs and its share of the loan all belong here.
Day rates and job prices
Customers often prefer a fixed price. Use the hourly figure as your floor: estimate the hours honestly, multiply, add materials with your markup, and the job price follows. The markup vs margin calculator helps with the materials side.
Questions people ask
How do I work out my hourly rate as a self-employed tradesperson?
Add the take-home pay you want to your yearly business costs, allow for tax and a buffer, then divide by the hours you can realistically bill in a year. Billable hours are usually 25 to 30 a week, not 40.
Why is my calculated rate so much higher than what I charge?
Usually because of unbilled time and costs. Travel, quoting, buying materials and admin are real work hours that no one pays for directly, so the paid hours have to cover them.
Should I charge by the hour or by the job?
Many customers prefer a fixed price because it removes risk for them. You can quote by the job and still use your hourly rate to build the price, as long as you estimate the hours honestly.
Does this calculate my tax?
No. The tax percentage is money you set aside. The right figure depends on your country, province or state and business structure; an accountant can confirm it.
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