Cost Per Hour
Know your cost per hour. Add insurance, vehicle, tools, software, phone and licensing for a year. Divide by the hours you can bill.
Yearly costs
Hours
Results
Fix the highlighted values to see results.
Your numbers
| Item | Per year | Per billable hr | Share |
|---|---|---|---|
| Total | — | — | 100% |
Billable hours = hours per week × weeks per year × billable %. Break-even = annual overhead ÷ billable hours.
Questions
What is break-even cost per hour?
Your yearly overhead divided by the hours you can bill. Bill less than this and the business loses money before you pay yourself.
Why only billable hours?
Drive time, estimates, ordering parts and paperwork take real hours but nobody pays for them. Spreading overhead over billable hours only shows what each billed hour has to cover.
What billable % is normal?
Many small low voltage shops land between 60% and 75%. Start at 70% and adjust it to what your timesheets show.
How does the margin slider work?
It sets the share of each billed dollar left after costs. Rate = cost per hour ÷ (1 − margin), so a $50 cost at 30% margin bills at about $71.43.