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Contractor Markup, Margin & Labor Rate Calculator

Calculate your true breakeven hourly rate, recover business overhead, and understand the difference between markup and margin.

Hourly Labor & Margin Inputs

$
What you pay yourself as personal wages per year.
$
Van payments, fuel, general liability insurance, software, tools, phone, marketing.
e.g. 48 weeks (allowing 4 weeks vacation/holidays).
Actual on-site billable trade hours (excluding driving & estimates).
Conservative (10%) % Margin Aggressive (35%+)

Calculated Rates & Target Revenue

True Breakeven Cost
$87.05
Per billable hour
Recommended Hourly Rate
$108.81
To hit 20% net margin
Total Annual Overhead & Wages: $117,000.00
Total Billable Hours / Year: 1,344 hrs
Gross Company Revenue Goal: $146,250.00
Equivalent Markup Multiplier: 25.0% Markup
Pro Trade Tip: A 20% profit margin requires a 25% markup on costs. Margin is profit divided by revenue, whereas markup is profit divided by cost!
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