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GENERAL CONTRACTOR

Break-Even Hourly Rate Calculator

Find your true hourly break-even point, then calculate a separate target rate with margin.

JOB INPUTS

Enter your numbers

Loading saved values

Rent, insurance, fixed payroll

$
Rent, insurance, fixed payroll

Crew hours you can bill each month

hrs
Crew hours you can bill each month

Materials and subs per hour

$
Materials and subs per hour

Desired margin used for the target rate

%
Desired margin used for the target rate
Results update automatically
CALCULATED RESULTUSD
Break-even hourly rate$81.67
Overhead / hour$66.67
Direct cost / hour$15.00
Target rate with margin$96.08
FORMULA USED$66.67 + $15.00 = $81.67; target rate = $96.08

HOW TO USE IT

How to use the Break-Even Hourly Rate Calculator

  1. 1

    Enter your monthly overhead.

  2. 2

    Set the billable hours per month.

  3. 3

    Add the direct cost per hour and target profit.

  4. 4

    Review your break-even hourly rate.

THE MATH

Break-even hourly rate formula

Break-even = overhead/hour + direct cost; target rate = break-even ÷ (1 − margin)

Break-even covers overhead and direct costs with no profit. The margin is then used to calculate a separate target selling rate.

PRACTICAL EXAMPLE

$8,000 overhead, 120 billable hrs, $15/hr direct, 15% profit

Overhead/hr = 8,000 ÷ 120 = $66.67. Break-even = $81.67/hr. Target rate at 15% margin = $96.08/hr.

FAQ

Frequently asked questions

What is a break-even hourly rate?

It's the minimum rate needed to cover overhead and direct costs, before profit.

How do I lower it?

Bill more hours or cut fixed overhead.

Does it include profit?

No. The calculator shows a separate target rate with margin.