GUIDE

What hourly rate should I charge as a solo tradesperson?

Q: What hourly rate should I charge as a solo tradesperson?

Calculate your rate by totaling your annual overhead, taxes, and desired profit, then dividing that sum by your estimated annual billable hours. Use TradesTimer to track your actual job duration and travel time, ensuring your rate covers the unbillable gaps between stops.

By Ryder Wishart — years on the tools, then time tracking in a contractor’s back office · Updated 2026-06-08

The Foundation: Total Expenses

Start by listing every business cost: insurance, tools, fuel, and vehicle maintenance. Add your required annual take-home pay and a buffer for income tax.

Your rate cannot simply be a 'guess.' It must be a mathematical reflection of what it costs to keep your business running.

The Billable Hour Trap

Many tradespeople mistake 'hours on site' for 'billable hours.' You must divide your total costs by the hours you actually spend working, not the total hours you are out of the house.

Use TradesTimer's automatic stop and trip detection to see your real-world ratio of working time to driving time. This data is crucial for setting a rate that prevents you from working for unbilled travel time for free.

Market Alignment

Research local competitors to ensure you aren't priced out of the market, but avoid 'racing to the bottom.' Low rates often signal low quality.

Instead, focus on the value of your expertise and the reliability of your service. A higher, professional rate is sustainable if you can prove your efficiency and professionalism.

FAQ

Should I charge extra for travel time?

You can either build a travel premium into your base hourly rate or charge a separate trip fee based on the mileage recorded in your logs.

How do I know if my rate is working?

Review your monthly profit margins. If your 'stops' are frequent but your profit is low, your rate likely isn't covering your 'trips' and overhead.

Last updated 2026-06-08.