Handyman Hourly Rate Calculator
Stop guessing your rate. Enter monthly business expenses, your annual profit target, how many hours a year you actually bill, and the tool computes the hourly rate that covers both, then turns any job’s hours into a quote with your margin applied.
Cost-based floor price, not a market quote. Check local going rates and adjust: the US national average is roughly $60–$85/hour.
Worked example, checked against this exact tool
Monthly expenses $4,000, annual profit target $60,000, 1,200 billable hours/year, a 3-hour job and 20% margin: annual costs = 4,000 × 12 = $48,000. Hourly rate = (48,000 + 60,000) ÷ 1,200 = $90.00/hour. Job quote = 90 × 3 × 1.20 = $324.00.
The rate formula, unpacked
Hourly rate = (annual business expenses + annual profit target) ÷ billable hours. Expenses include fuel, tools, insurance, phone, marketing, taxes and anything else the business spends. The profit target is what you want left over: your wage and return, not your revenue. Billable hours are only the hours a customer pays for, never total work hours.
Billable hours: the number everyone overestimates
A 40-hour week is 2,080 hours a year, but quoting, driving, callbacks, admin and downtime are not billable. Most solo handymen bill 1,000 to 1,500 hours: about half their work time. Entering 2,080 here is the classic way to set a rate that starves you.
Margin vs markup on quotes
This tool applies a margin to the job quote: the extra percentage on top of your costed hours that protects against underestimates and builds profit. If your costs are fully loaded in the hourly rate already, a 10 to 20% margin is typical; riskier jobs deserve more.
What competing calculators miss
Jobber’s and Joist’s guides explain the method but leave you to do the arithmetic in a spreadsheet. This page runs the full calculation, turns the rate straight into a margined quote, and warns about the billable-hours trap the guides only mention in passing.
Frequently asked questions
How do I calculate my handyman hourly rate?
(Monthly expenses × 12 + annual profit target) ÷ billable hours per year. Example: ($4,000 × 12 + $60,000) ÷ 1,200 = $90/hour.
What is the average handyman hourly rate?
Roughly $60–$85/hour nationally in the US, ranging $40–$150 by market, trade and job complexity.
How many billable hours should I use?
1,000–1,500 a year for most solo operators: about half of total work hours after quoting, travel and admin.
What counts as a business expense?
Fuel, vehicle costs, tools, insurance, phone, marketing, licenses, accounting and taxes: everything the business spends, annualized.
Should profit be my wage?
Yes, effectively: the profit target is what the business must leave you after all costs. Set it to the annual income you need plus a return for risk.
How do I quote a fixed-price job?
Estimate the hours honestly, multiply by your rate, then add the margin. The tool’s quote output does exactly this.
What margin should I add to quotes?
10–20% is typical when costs are fully loaded in the rate; more for uncertain or risky work.
Hourly or per-job pricing?
Hourly is simpler and fair for open-ended work; fixed quotes win more jobs but shift the risk of overruns to you. The margin is how you price that risk.
Do I charge for travel time?
Build it in: either count travel toward the job’s hours or add a trip fee. Unbilled windshield time is a classic profit leak.
Should I match competitors’ rates?
Use them as a sanity check, not a target. If your cost-based rate is above the market, cut costs or bill more hours: matching a rate that loses money helps no one.