How to calculate your handyman hourly rate
Updated November 1, 2026 · QuoteCubby
A simple formula for an hourly rate that covers your pay, your business costs and the hours you can’t bill, with a worked example.
The formula
Hourly rate = (yearly pay you want + yearly business costs) ÷ billable hours per year.
Billable hours are the hours a client pays for. Driving between jobs, quoting, supply runs, phone calls and bookkeeping are real work, but they’re usually not billed, so they have to be covered by the hours that are.
Step by step
- Pick your yearly pay goal. What you want to take home, including money set aside for taxes.
- Add up yearly costs. Insurance, vehicle, fuel, tools, phone, software, ads, licenses where required.
- Estimate hours available. For example, 50 weeks × 40 hours = 2,000 hours.
- Estimate the billable share. Track a few weeks: billed hours ÷ hours worked.
- Divide. Pay plus costs, divided by billable hours.
Worked example
Say the pay goal is $55,000 and yearly costs are $15,000, so the business needs to bring in $70,000. Here’s the hourly rate at different billable shares of 2,000 hours:
| Billable share | Billable hours | Hourly rate needed |
|---|---|---|
| 50% | 1,000 | $70.00 |
| 60% | 1,200 | $58.33 |
| 70% | 1,400 | $50.00 |
Example only: the pay goal, costs, hours and billable shares are illustrations, not typical figures. Use your own.
Use the rate in your quotes
Put your rate in the calculator as Target $ per hour (its starter number is $75, just as an example). The calculator then prices your hands-on hours plus setup, a buffer for surprises, consumables, materials with your markup and the drive, and shows what each job really pays per hour.
Also set Your minimum $ per hour: the lowest real hourly pay you’ll accept. Jobs below it get flagged so you can raise the price or pass.
Check your own numbers
The free QuoteCubby handyman calculator prices a job from your estimated hours, difficulty and timing, adds materials with your markup, consumables, supply runs and the drive, and shows what you really earn per hour.
Open the free handyman calculatorFAQ
How do I figure out my handyman hourly rate?
Add the pay you want for the year to your yearly business costs, then divide by the hours you can actually bill. Billable hours are fewer than hours worked, because driving, quoting, supply runs and paperwork aren’t billed.
What counts as a business cost?
Anything you pay to run the business: insurance, licenses where required, your vehicle, tools, phone, software, advertising and an amount set aside for taxes. Ask a tax professional what applies to you.
Should my rate match other handymen in my area?
Check local prices so you know where you stand, but start from your own costs. If your number is far above the local market, look at your costs and your billable hours before you lower it.
The QuoteCubby Handyman Kit
Spreadsheets for handyman businesses: quote jobs from your own hours, materials and drive, keep every client and job in one place, and see your real hourly pay.
Works in Google Sheets (free) and Microsoft Excel. English and Spanish files, sample + blank versions and a quick-start guide in every tier. No macros, no app, no subscription. Not ready to buy? The free calculator and the free printable price sheet work without it.
Handyman Pricing Sheet
Quote any job in a minute.
- Settings for your target and minimum pay per hour, minimum job, setup and cleanup time, a buffer for surprises, consumables, material markup and cost per mile
- Quote: estimated hours, difficulty, regular / evening-weekend / same-day, materials, supply run and disposal
- Real $/hour after the drive, with a BELOW-MINIMUM warning
- Printable client quote
- Price list by job length for regular, evening-weekend and same-day work
Handyman Client Tracker
Know what each job really pays you.
- Clients (200): home type, usual jobs, access & notes
- “Last price change” and review flags per client
- Jobs log (1,000 rows) with real $/hour after driving and materials
- Flags jobs below your minimum per hour
- Dashboard: income, hours and real $/hour by month
Handyman Complete Kit
Everything, in one workbook.
- Handyman Pricing Sheet + Client Tracker in ONE workbook
- Shared Settings: change a rate once, it updates everywhere
- Quote, client quote, price list, clients, jobs and dashboard
Secure checkout by Stripe. After payment you go straight to your download page. Digital download (.xlsx, .pdf). One-time payment in USD. 14-day refund policy. Bought the Pricing Sheet or Tracker and want the Complete Kit? Upgrade within 14 days and we refund your first purchase. Questions? hello@quotecubby.com