Determine how much to charge per hour as a general contractor, subcontractor, or handyman
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This Construction Hourly Rate Calculator is designed to help general contractors, subcontractors, or any specialty contractor in construction accurately calculate their hourly rate based on an annual target income after expenses and taxes.
The average hourly rate of a general contractor varies depending on the region of the country in which they are working, their level of experience, and the type of work that they are doing. However, on average, general contractors typically charge between $75 and $125 per hour for their services.
There are many business expenses that any independent contractor in construction can incur. Some of the most common ones include:
A contractor determines their hourly rate based on a number of factors, including their cost of living, overhead costs, taxes, level of experience, and/or the speciality of their trade.
As a general contractor, the steps for calculating your hourly rate are as follows:
Once you've determined these four things, you calculate what you need to charge per hour by using the following formula:
TI / (BH * 1 - T) + O / BH = Hourly Rate
For example, we'll calculate an hourly rate using the following numbers:
Target income per month: $10,417
Billable Hours per month: 147
Monthly overhead: 1610
Using these numbers, our formula would be:
10,417 / (147 * (1-.25)) + 1,610 / 147, or when simplified down, 94.49 + 10.95.
After rounding, we arrive at an hourly rate of $106 per hour.