PrycebookWhat should you charge per hour?
Three numbers: what an hour of your worker's time costs you, how much of that time you actually bill, and the margin you want to keep. You get the rate that only breaks even, and the rate to charge.
Your rates show up here
Fill in the three numbers and press Calculate. The page address keeps your numbers, so you can bookmark it or send it to your business partner.
Getting the three numbers right
The answer is only as good as what goes in.
Hourly cost, all in
The wage is the start, not the total. Add payroll taxes, workers' comp, benefits, paid time off, and the truck, fuel and tools that go with the worker. Divide the year's total by the hours you paid for.
Billable hours
Nobody bills every paid hour. Drive time, shop time, estimates, callbacks and training all get paid and none of them get billed. 60–75% is common for field crews; track a few weeks if you're not sure.
Target margin
The share of the price you keep after paying for the labor. It isn't the same as markup: adding 30% to your cost leaves you a 23% margin, not 30%. The calculator works in margin.
Now quote at that rate, every time
Put your labor rate and costs in a Prycebook price book and set your target margin once in Settings. Every quote you build from it shows its margin as you go, and warns you when a job slips under your target.
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