Free Tool
Free shop rate calculator
Enter your annual overhead, billable hours, labor cost, and target profit to find the hourly rate you actually need to charge. Free, no signup.
Rent, trucks, office, insurance, admin pay
Field techs × their truly billable hours
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Charge a rate that covers everything
A shop rate has three jobs: pay the wage, cover the overhead of running the business, and leave a profit. Skip any one and the rate is too low, even when it feels fine.
The trick most people miss is billable hours. A tech is on the clock all week, but drive time, callbacks, cleanup, and slow days are not billable. Spreading your overhead across the hours you can actually bill, not the hours you pay for, is what makes the rate honest.
Enter your annual overhead and your real billable hours, and the calculator gives you overhead per hour. Add your burdened labor cost to get the break-even rate, the point where you make nothing. Then set a profit margin and it returns the billing rate to charge.
If the number looks high, it usually means your billable hours are lower than you think, or your overhead is higher. Both are worth knowing before you quote the next job.
Shop Rate Calculator questions
What is a shop rate?
The hourly rate you charge a customer. It has to cover the wage you pay, a share of your overhead, and your profit, which is why it is well above what you pay the tech.
How do I calculate overhead per hour?
Divide your annual overhead by the hours you can actually bill in a year. This calculator does it once you enter both.
Why are billable hours lower than clock hours?
Drive time, callbacks, cleanup, training, and downtime are all paid but not billable. Using clock hours understates your real cost per billable hour.
Is this really free?
Yes. No email, no signup, and nothing you type leaves your browser.
Make every hour pay for itself
Werx tracks time by job at its burdened cost, so you can see which work actually clears your rate. 14-day free trial, no credit card.
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Disclaimer: These free tools and templates are provided for general information and estimating purposes only. All results — including quantities, material and cost estimates, load, sizing, and span figures, scores, and any guidance or warnings — are rough approximations that may not fit your specific project, site conditions, local building codes, or current prices. They are not engineering, architectural, structural, legal, financial, or other professional advice, and are not a substitute for a licensed engineer, architect, contractor, or other qualified professional. Always confirm quantities, sizing, and structural, electrical, mechanical, and code requirements with a licensed professional and your local authority having jurisdiction before purchasing materials or performing any work. Werx makes no warranty as to accuracy and accepts no liability for any decision made using these tools. Use at your own risk. See our Terms of Service.