Business Free

Labor Rate Calculator

Enter business expenses and desired income, calculate breakeven and target hourly rate. Handyman-specific benchmarks ($60-85/hr).

Vehicle, insurance, tools, phone, marketing, etc.

Default 1,000 (about 50% of total work hours)

Profit margin on top of breakeven

Results

Breakeven Rate
--
Target Rate
--
Annual Revenue
--
Overhead/Hour
--

Handyman Industry Benchmarks

Entry Level $45-60/hr
Industry Average $60-85/hr
Experienced / Specialized $85-125/hr
Your Target Rate --

Rates are estimates. Adjust for your local market, specialization, and experience level.

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Email these results to yourself

Get a copy you can reference on the job site or attach to a quote.

How to Use This Calculator

1. Enter your annual overhead. Include everything that costs money to run your business: vehicle payment, fuel, insurance, tools, phone, marketing, software, and any other expenses.

2. Set your desired income. This is what you want to take home after business expenses. Be honest about your financial goals.

3. Estimate billable hours. A full-time solo handyman typically bills 1,000-1,200 hours per year. The rest goes to driving, quoting, purchasing, and admin work.

4. Add markup. The markup covers profit and contingency above your breakeven rate. Most successful handymen add 20-40%.

How the Labor Rate Formula Works

Total_Annual_Need = Overhead + Desired_Income

Breakeven_Rate = Total_Annual_Need / Billable_Hours

Target_Rate = Breakeven_Rate x (1 + Markup%)

Annual_Revenue = Target_Rate x Billable_Hours

The breakeven rate is the minimum you must charge to cover costs and take home your desired income. Charging below this means you lose money or earn less than your goal. The target rate adds a profit buffer for slow periods and unexpected expenses.

Frequently Asked Questions

What should a handyman charge per hour?
Most handymen charge $60-85 per hour for general work. Your actual rate depends on your overhead costs, desired income, and local market.
How do I calculate my labor rate?
Add your annual overhead costs to your desired personal income, then divide by your billable hours per year. Add a markup of 20-40% for profit and contingency.
How many billable hours does a handyman work per year?
A full-time solo handyman typically bills 1,000-1,200 hours per year. Out of 2,080 total work hours, roughly 50% is non-billable.
Why is my handyman rate too low?
Most handymen undercharge because they do not account for overhead, non-billable time, or profit margin. Use this calculator to find your true breakeven rate.

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