Hourly Rate Calculator - Calculate Your Hourly Rate & Pricing
Free hourly rate calculator for woodworking businesses. Calculate your hourly rate, billable rates, and pricing structure. Include overhead costs, labor rates, desired income, and profit margins. Determine competitive pricing and ensure business profitability. Perfect for contractors and freelancers!
Business & Income Parameters
Business Type
Desired Income
Monthly Business Expenses
Business Parameters
Market Analysis
Rate Analysis
Add your business expenses and income goals to calculate your optimal hourly rate with comprehensive pricing analysis and market positioning.
Overhead Analysis
Comprehensive overhead cost calculation including shop rent, utilities, insurance, and equipment to ensure all business expenses are covered.
Income Planning
Strategic income goal setting with billable hours analysis and work-life balance considerations for sustainable business growth.
Market Positioning
Competitive rate analysis and market positioning to ensure your pricing reflects your skill level and market conditions.
Profit Optimization
Profit margin calculation and business sustainability analysis to ensure long-term financial health and growth potential.
Financial Security
Emergency fund and equipment reserve planning to protect against unexpected expenses and business disruptions.
Business Metrics
Key performance indicators and business metrics to track profitability, efficiency, and competitive positioning.
Frequently Asked Questions
Include all business expenses: shop rent/mortgage, utilities, insurance, tool maintenance, consumables, marketing, and administrative costs. Calculate monthly totals and divide by billable hours to get overhead per hour.
Typical billable percentages: Solo craftsperson 60-75%, Small shop 70-80%, Production shop 80-85%. Account for admin time, marketing, setup, maintenance, and business development in non-billable hours.
Yes, consider tiered pricing: Design/consultation (highest), Custom furniture (premium), Production work (standard), Repair work (varies). Adjust rates based on complexity, skill required, and market demand.
Review annually or when major changes occur: increased expenses, new skills, market changes, or inflation. Track actual vs. projected income and adjust rates to maintain profitability and growth.
Target 15-25% profit margin for sustainability. Higher margins (25-35%) for specialized work or unique skills. Lower margins (10-15%) acceptable for steady production work or when building client base.
Emphasize value: quality craftsmanship, experience, reliability, warranty, and unique skills. Show portfolio, testimonials, and certifications. Explain the difference between your work and lower-priced alternatives.