Shop Rate Calculator
Set an hourly billing target that recovers owner pay and overhead within realistic billable time.
Set up your calculation
An illustrative example is loaded. Replace its values with your measurements, costs or documented settings.
Calculation
Your result
- Base recovery rate
- 90 USD/h
- Target billing rate
- 108 USD/h
- Monthly billing target
- $10,800.00
- Average weekly billing target
- $2,492.31
The quote handoff carries your inputs and assumptions. Only an explicit base cost is suggested as a quote cost; prices, rates and measurements remain planning notes.
How it works
Base rate = (monthly owner pay + overhead) ÷ monthly billable hours. Target = base rate × (1 + markup ÷ 100). Average week = monthly revenue × 12 ÷ 52.
- Use billable hours after administration, maintenance and downtime. Materials and subcontract work are excluded. Owner pay here is a cost target, not profit.
- An hourly rate is a planning result. Multiply by the actual job hours before adding a cost to a quote.
Build a rate around realistic billable hours
| Input or step | Example value |
|---|---|
| Monthly owner pay target | $6,200 |
| Monthly shop overhead | $2,800 |
| Monthly billable time | 100 hours |
| Base recovery rate | ($6,200 + $2,800) ÷ 100 = $90/hour |
| With 20% markup | $108/hour |
These are example business inputs, not recommended market rates. Materials and subcontract work are separate.
Common questions
Should I use all my working hours?
Use the hours you can realistically bill after administration, maintenance, sales, and downtime.
Is owner pay the same as profit?
No. In this calculator owner pay is a cost target recovered by the base rate. Markup is the additional amount above that base.
Learn the method in the Academy
Follow the matching lesson or workshop reference before applying the result.
Use this in your project
Continue with the next measurement or cost, then keep the assumptions with your quote.
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