Many new service businesses fail not for lack of customers but because they charge too little. This calculator works backward from the income you want to the minimum you need to charge for each hour you can actually bill.
Minimum price per billable hour$0
- Revenue needed per year
- $0
- Revenue needed per week
- $0
- Billable hours per year
- 0
Enter your goals to see your minimum rate.
Why billable hours matter so much
You might work 50 hours a week, but you can only charge for the hours spent doing paid work. Quoting, travel, invoicing, marketing, buying supplies and admin are unpaid. Many owners can bill only 25 to 35 hours in a full working week. Using your real billable hours, not hours worked, is the difference between a rate that works and one that quietly loses money.
A worked example
A handyman wants to take home $55,000 a year. Business costs, including insurance, vehicle, tools, phone and marketing, are $14,000 a year, and they set aside 25% for taxes. They can bill about 28 hours a week for 47 weeks a year: 1,316 billable hours.
Revenue needed: $55,000 ÷ 0.75 + $14,000 = about $87,300 a year. Minimum rate: about $66 per billable hour.
This example is illustrative. Ask an accountant to estimate your actual tax rate.
Your floor, not your price
The calculator gives the least you can charge and still meet your goals. Your actual price should reflect your skill, your reviews, local demand and what competitors charge. If your floor is above the local market rate, specialize in work customers value more, raise efficiency, or adjust your goals.
Next: check the whole plan with the break-even calculator and the startup cost calculator.
Last reviewed October 17, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
