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What should you actually charge per hour?

Most people set a rate by guessing, or by copying a competitor. This works backwards from the income you need — after costs, time off, and the hours you can't bill.

Take-home income you want (per year) What you need to pay yourself

Business costs (per year) Vehicle, tools, insurance, software, materials you absorb

Weeks you work per year 52 minus holidays and sick time

Hours per week you're available Total working hours, not just billable

Of those, what % is actually billable? Quotes, travel, admin and marketing aren't. 60–70% is typical.

Tax + contributions set-aside (%) Rough allowance so the take-home figure is real

Your minimum hourly rate

—

billable hours / year

revenue you must bill

per 8-hour day

Email yourself this rate

We'll send your number plus a one-page guide on raising rates without losing customers.

Why your rate is higher than you expect

The mistake is dividing desired income by all working hours. You can't bill all of them. Quoting, driving, invoicing, chasing payment and marketing are real work that no customer pays for directly — so every billable hour has to carry them.

Billable hours = weeks × hours × billable %.
Required revenue = (income ÷ (1 − tax rate)) + business costs.
Hourly rate = required revenue ÷ billable hours.

Treat this as your floor, not your price

This is the rate at which you break even on the life you want — it isn't your market price. If your work is specialised, urgent, or higher quality than the average, charge above it. If the number shocks you, that's useful information: it usually means the current rate is quietly funded by unpaid overtime.